Page market cap less than 5bln, while few companies which do not earn any profits or with difficult path to profitability are trading at >$10 bln…
Valuation appears rich due to slower industry growth and am sure headwinds are behind. ARS would yield fruits with better inventory management and once inner wear demand bounces back, page will have an edge due to it’s premium positioning, strong brand, pricing power, distribution reach, new segments (athleisure, juniors) and honest management (strong corp governance).
Future is now bright- Volume growth will come, margin will improve (pricing power and operating leverage) and cash turnover should improve (lower inventory days)… stock appears attractive to me at this valuation.
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