Hi 101. Were they fully stocked is a interesting one. My answer is no and that is a problem. If they were fully stocked then there is a bigger problem afoot.
Wierd way to launch a product. Friends who have traveled to and others who live the states have had great trouble finding stocks in stores that should have had them and others had shelfspace not replenished . I know we all think of retail as utopia where everything is instant but a empty space , poor stock presentation etc is all opportunity missed. There are specialist merchandising companies that stock stores and when you are introducing a new product you want as much exposure as possible . Even simple phone calls to smaller specialist stores stocking yowies seem to have trouble getting stock and expiry dates don't seem to have advanced.
We all know there is efficiency in scale of manufacturing , logistics and we seem happy on one shift ? so that means we won't get expected margin ? Is that the reason to state retail turnover number rather than units where we would more clearly see lower margin?
Does it mean we are running down inventory - possibly yes IMO
Does it mean we are manufacturing a special wrapped version or one for a different country? maybe that could be a reason ? Be good if that was realistic
Is the logistics problem store based, warehouse based or are we not paying for premium merchandising company ? Wish I knew but is isn't only walmart from my calls not holding stock or able to get stock.
Is lack of production constraining sales? Has there been a production issue? If so what is constraining production , distribution - we have plenty of money and production capacity?.
If YOW didn't have all the above possible issues sorted a couple of months ago then apart from the obvious management issue it will take really hurt sale numbers at the important time of year and how many more Christmas's do we have exclusivity of no competition?
Walmart being 80% of sales is a issue in regards to getting bank finance so that will mean raising money if cash flow won't do it,. Banks normally don't like businesses dominated by one customer especially walmart with no contract guarantees.
There are lots of positives with YOW but management aren't communicating them which is weird ATM. The underlying story is good but we just don't know if they will make any targets they have set themselves or shareholders thought they would achieve. Looking back at posts 12 months ago if you were to say that sales were as low as they were last quarter back then you would have been lynched by all the upbeat folk on HC. You know - we were 6 weeks away from treble shift and new wrapping machines etc. Now those same folk are defending the current position pushing out those unachieved deadlines when people who brought up facts of common basic retail knowledge like lead times , stocking cycles and planograms were chastised at the time. Brokers reports at the time had what numbers in them?
The digital marketing has been appalling IMO and I am yet to hear or any in store or local stuff and they have had a slow measured social media campain.
Now Yowie is promoting a NewZealand store stocking yowies but no Aussie store ??? - no local Zoo perth for example , Taronga Sydney and Dubbo . NewZealand store has a massive 16 in stock???? wow. Joys out of stock?? Yowie marketing geniuses are promoting a store with no stock??? Do they have any clue how vicious a social media campaign can be against a promotion or store that doesn't deliver?? I'll let you yowie experts find out if they are getting them from Perth or USA and what expiry date they have .
YOW better have a blockbuster idea and marketing on its way otherwise I will begin to doubt their ability to promote and satisfy demand
Not negative post , more neutral as such due to lack of information available from YOW but AGM better produce some gems and no surprises.
Are the sellers impatient short termers,traders, stops getting shaken out, technical boys getting nervous or someone selling down awaiting issue to replenish ? They have called it right down from the 120's for now and I wasn't expecting the quarterly that came out.
YOW Price at posting:
$1.06 Sentiment: None Disclosure: Held
