Folli Follie eine große Chance

massive Vorwürfe:

The network of points of sale (POS) appears materially smaller than expected: We performed an extensive due diligence and checked each individual POS, often in multiples ways: contrary to the 630 POS mentioned in the 2016 annual report for the Folli Follie brand, we found evidence of only 289 operating POS. The majority of the remaining ones appear to have ceased operations.

B. Onsite checks: we personally visited several Folli Follie POS in key strategic locations (e.g. New York City and Tokyo, Japan) and can confirm that many critical assets that the company, still appearing on its website (e.g. FF Soho or FF Madison Avenue shops), are indeed closed. We also noticed how a number of POS, including in key locations, appear to be of negligible size (often just a small window) and in the process of liquidation.

C. Digital presence: we ran an audit on Folli Follie presence online, checking website traffic and popularity on social media and benchmarking it against FF competitors. Our findings suggest that FF digital presence, especially in Asia, may be indicative of a far smaller company.

D. Financial analysis: Folli Follie official figures indicate growing revenue and profit, but constantly negative free cash flow, the bulk of which is explained by large and increasing working capital in its Asian subsidiaries. The amount of account receivables and inventory of FF Asian subsidiaries seems clearly disproportionate compared to its peers.