Naked Wines: Inventory Overstock & Turnaround
Former Director, Naked Wines Australia
inpractise.com/articles/naked-wines-inventory-overstock-and-turnaround
Naked Wines: Inventory Overstock & Turnaround(January 15, 2024)
Former Director, Naked Wines Australia
Interview Transcript
This is a snippet of the transcript, sign up to read more.
That's interesting. I have two follow-up questions. Firstly, regarding the inventory issue, they have too much inventory. How do you think this will play out? Management says they can release 40 to 60 million in inventory within the next 12 to 18 months. Do you see any risk in this assumption, considering the prices may have dropped further, leading to more write-downs?
Yes, there is definitely a risk. Prices will eventually start to increase, but I believe this will take longer than 12 to 18 months; possibly up to three years. So, there is a real risk of further write-downs. On the positive side, they have significantly reduced their forward purchasing. For instance, in Australia, they haven't purchased any 2023 vintage and they've indicated they probably won't buy any 2024 product. Once they sell their current stock, they don't have many commitments for future purchases in Australia or the UK. I'm not entirely sure about the situation in the US, but they do have an excess of inventory. The risk, as you mentioned, is that the price could still drop over the next 12 to 18 months.
This is a snippet of the transcript, sign up to read more.
Related Content
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2024 IP 1 Ltd. All rights reserved.