RE: RE: RE: RE: RE: CEO should be terminated The bottom line is that someone decided to chase revenue by sending out too many mailers in the DTC business and too many coupons in the GOL business. Had the gamble been profitable, they'd be a hero and the stock price would've been headed back to $13. Instead, it's back down to $11 and we have no idea what happened to this person(s)?
The CEO said on the conference call that a loss in DTC is simply "unacceptable" but what does that mean?
I'm sure that all many investors wanted was an uneventful Q2 after what appeared to be a stable Q1. Now, those poor decisions may well linger into Q3.
Why are they not simply concentrating on cutting costs and finding scale from all these acquistions? The couple of right sizing initiatives they've initiated appear to be reactive instead of proactive and are being implemented too slowly. Further to that, you can't pass off ERP as cost cutting, it is an investment. It has yet to be seen how the investments in Robert & Fils and the South American plant added any value. Only one out of two acquistions appear to have added any value and the way the earn outs are structured, the company ends up paying through the nose for the ones that work and holding the bag on the ones that don't.
The whole thing wreaks of poor management which leads one to conclude that there is alot more cost to come out and pricing to take in. The North American HCP and HFS business is probably worth more that the current EV alone. That means that you're getting Europe, DTC and Private Label for free. The board can't let management continue to destroy shareholder value, there is alot to be salvaged here one way or another.
IMO.