Youth are the key to BBG profits because they "need" the product to reflect who they are....this is a key factor I feel is dismissed in these forums because we aren't fully comprehending the vaguaries of fashion.(exactly the same reason a pub is cool and booming for 18 months on a particular night - and then virtually overnight the whole crowd go down the road to another venue - and that original pub with a great position and fit-out, cant explain why the crowd ever left).
Right now the youth are looking outside of surf...its overcooked and simply not "in"like it has been for 20+yrs.Sure BBG has some younger cool brands in the mix - but it all feeds thru the same outlets that are tarred with the same brush right now.
We can all hold semantic feelings for surf brands/lifestyle/legends of the sport etc - but you cant fight against the moving tide of youth....but just like the tide, one day it will come back in...its just not going to be this year or next IMHO.
The surf brands must tighten control on their inventory so that on going over supply issues - and the resultant sales, do not continue to devalue the genre. These sales also put a lot of product on the wrong punters backs - further exasperating this vicious fashion cycle.
As we are a long way from seeing this cycle turn in Australia - we have to look out for (hopefully) good news from the vertical integration of BBG by realising more profits - and the US sales figures lifting further.
BBG Price at posting:
$1.46 Sentiment: LT Buy Disclosure: Not Held
