Beauty and the beast: Why Zoe Foster Blake is the least of BWX problems
BWX’s Gration acknowledged that the major change, which caused the group to slash its profit forecast, was that it could no longer engage in a practice where retailers increased sales by ‘selling’ more products to their distributors than they could sell to consumers. . The retail winds have changed so rapidly that this practice of channel filling – which the company had relied on in its forecasts given in May – is no longer tenable just 6 weeks later. “Retail conditions have been challenging and changing, putting more pressure on our retail partners and ourselves with rising inflation, rising prices and rising interest rates,” Gration explained to analysts and investors on a conference call following the announcement of the capital increase in late June. “When we provide trade updates in May, our plan assumes sales and holds certain inventory levels with select wholesale retailers in June. Challenging market conditions have caused us to change our approach.” BWX’s retail partners are