Greg Petro and Jonathan Duskin on how fashion companies are proving their worth today.
Figuring out how just how much a company is worth or how it should be positioned for the future is tough in the best of times — and only harder with a pandemic scrambling the market.
But even in the midst of crisis there is something fashion companies can do to strengthen both — understand and smooth out variability in their operations.
So said Greg Petro, chief executive officer of retail analytics firm First Insight, and Jonathan Duskin, ceo of activist investor Macellum Capital Management, in a discussion that also touched on the nature of shareholder activism and what investors want.
“Variability is the biggest risk factor to valuation,” Petro said. “The concept of not having visibility and decreasing variability represent an enormous challenge for many companies and many executives.”
Understanding consumer behavior — especially as it’s changing so quickly during the pandemic — can help companies plan better, making for happier shoppers and fatter margins.
“It’s important for companies to understand [consumer behavior] and to constantly keep a pulse as to where they’re headed” to build a smoother business, Petro said.