Ann: 1H21 Results Presentation, page-169

I've been watching this for 15months, waiting for an opportunity to buy & decided to buy earlier this week. It is (ah, was) 4% portfolio weight. Should have been smarter & waited.....new CEO's regularly "clear the deck" to begin with. That said, the 3rd downgrade with the subdued outlook is disappointing but on consideration reasonable in context with the activity of the daigou distributors. Again, my mistake in hindsight. This is still an awesome business though, the opportunity with China is huge and they've barely scratched the surface. The daigou problems are a function of Covid which should dissipate over the next year. Some posters think this is the beginning of a permanent decline. I don't. I think it's temporary, the thesis still stands. Extrapolating the daigou impediments into the future I think is wrong, it's temporary & is why this is the opportunity that presents for investors. I think this is a great time to buy in.
Thankfully they have ample cash to invest in the brand. They've firmed relationships with Chinese counter parties/partners. I'm really happy with the new choice of CEO. He has form with growing brands oversees. I was invested in Pacific Brands when he turned around Bonds and it was subsequently taken over by Hanes. This isn't a quick turn stock, but I think it could be an awesome investment for those with a 3-5 year investment frame. I'm shutting out the "noise" of people with short time horizons. If the long term story changes, I'll review it but for now I don't see anything except an opportunity that just got better.