Well, all I can say is good luck Telstra managing the stores because you'll need it. It's hard to see how Telstra management can run the stores anywhere near as profitably as Vita. The beneficiaries here are the competing branded stores.
We all know that Vita has a first class sales culture and has delivered excellent service to Telstra as holders of the licence over the years. And despite being constantly pressured by Telstra over the years by cutting commissions, Vita has always marched on and found ways to better serve customers and at the same time time earn reasonable returns for shareholders.
I believe management is of high quality here, and while there is short term pain - they are more than capable of building the skin care business meaningfully in coming years.
VTG Price at posting:
$1.13 Sentiment: Hold Disclosure: Not Held
