From what I can see the demand is there for all lines but supply could be an issue from what somebody mentioned earlier . Shortage of power in China, sea freight cost escalation, and ports in California overwhelmed. I think the GLB team has this in their sights. They stated that even though the EPS was 80 cents they only paid 32 cents div as they wanted to invest in the business. One of those investments was inventory so hopefully they have enough to meet demand for the last quarter.
My personal view (guess) is that part of the growth is due for covid benefits being spent but a lot of it is structural with huge new interest in skating which is driving growth in skateboards and roller skates. You need to sell 5 tee shirts, or 2 pairs of shoes, etc for the same rev as 1 board.
The CEO commentary in the annual report says that rev so far have been ‘solid’, whatever that means. AGM will provide more detail hopefully.
I expect GLB to keep growing, just at a slower rate. And it may be lumpy !
GLB Price at posting:
$6.15 Sentiment: Buy Disclosure: Held
