Although Prolexus has been eliminated by NIKE, we can analyze the entire market trend based on the world economic and the operation of these brands such as NIKE and UA.
In the near term, active wear retails dealing with unprecedented macro headwinds: inventory levels, FX movements, European consumer that's now under incredible pressure.
In late June, Nike stock slumped further after issuing single-digit revenue growth expectations for the full-year 2023. Expected Nike to lower growth estimates, citing the company still battling a strengthening US dollar and inventories remaining high across North America.
Nike's overall inventory dollars in North America were up 44% in its most recent quarter. I think inventory levels will remain high, seen that in the channel play itself out in very heavy apparel promotions throughout the sector. And whether it's Nike, Adidas, Under Armour — everyone's been a bit more promotional recently. With inflation remaining near 40-year highs, the lower- and middle-income consumer is under a lot of inflationary pressure.
All of this means that sales are sluggish, and brand owners are digesting inventory, and will naturally stop placing orders, which in turn may cause garment factories to shrink orders by as much as 50% to 70%.
The recovery of the entire market is not optimistic and may not show light until the second half of 2023.
My deduction is proven correct, Prolexus's Operation business performance has been continuously declining, and the previous two quarters' performance was a false appearance propped up by Other income. Looking at the stock price of YB, the company that acquired Prolexus, it has also been consistently hitting new lows over the past two years. Why is that? It is because the team behind the acquisition of YB (which includes the team acquiring Prolexus) is a group of speculative traders who are not interested in developing real businesses; they only want to make quick money. Recently, this team has tasted success and once again embarked on an acquisition spree, targeting SMI. Unfortunately, this acquisition has encountered obstacles and has drawn the attention of relevant authorities. If you haven't jumped ship yet, it's time to do so and escape while you can! There is no bottom, only lower depths.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
imvu
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Posted by imvu > 2022-07-22 10:00 | Report Abuse
limit up ?