1 - Alden confirmed that Dr. Dre and Beats are "Killing it"
2 - Their packaging (which I agree) was #$%$ - white and black #$%$???
3 - They will be announcing other products outside the headphone space
4 - They are in talks with Walmart - Expect an announcement Q4 with product introduction in store 2014
5 - Andrus gets 3 cents of our money Q1 (sorry I told you so!)
6 - The supply line is chocked with product on the shelf.
7 - They were reluctant to give forward guidance beyond Q1 (.25-.30) Loss
Alden is going for a complete regroup and back to basics (that is a good thing). However, they screwed the pooch last year.
I don't recall the name "Walmart" being mentioned but Alden coyly said something like, ".....the retailer you are thinking of....". Do you know that it is Walmart?
Also, in regards to being coy, at the end of the CC Alden said he could answer questions in more detail one on one. Holy Securities and Exchange Commission, we know that goes on, but to say it in a public forum,.......he's a little rough around the edges, imo.
Finally, as long as he was being so forthright, why didn't anyone ask him if plans to contiune selling his shares?........I guess they'll ask him one on one.
Good summary. I thought the Walmart announcement would be earlier, but might have missed that one (or wishful thinking). I have to admit that I was floored by the 1Q loss projection. Although it now makes sense.
Alden was honest and awesome on the call and the analysts responded favorably. IMO, he laid to rest the big concerns by reiterating the product quality and R&D team they have in place are top notch. No damage to the brand, just not capitalizing like they should.
No debt, cleaning out the inventory and sounds like cash flow should be fine going forward.
I like what I heard and will be going 'all in' tomorrow on the turnaround story. Fortunately my average is so low and I sold nearly half today in anticipation of buying back tomorrow (either higher or lower) that I should make alot of money here over the next several years. Alden spent most of the call trashing Andrus, basically blaming everything on his poor decision making. Makes sense and I was never a fan of Andrus anyhow. Fortunately this move was made before it was too late. I still wonder about the share buyback and the takeover story is a little broken now as that will have to wait for a turnaround. I've always loved the brand and the graphics and love how they are looking outside of the headphone space now and that should drive some revenues going forward. I will be on the buy side of the panic sell tomorrow.
I agree with you an Michael here. I was trying to listen to the call, but did not get to hear everything very well. Was Walmart specifically mentioned? I thought that I only heard talk about new retailers and no specific names.