Daily Brief Consumer: Page Industries, Shake Shack Inc Class A, Raccoon Holdings, Inc., Focusrite Plc, Grupo Bimbo SAB de CV and more

• In this insight, we present our top investment ideas in the Apparel & Fashion retail sector, analyzing recent earnings results and key insights from company earnings calls.
• Names discussed include Page Industries (PAG IN), Vedant Fashions (MANYAVAR IN), Aditya Birla Fashion and Retail Ltd (ABFRL IN), Arvind Fashions (ARVINDFA IN) and Go Fashion India (GOCOLORS IN). 
• We have a bearish stance on all names except Page Industries (PAG IN).  

• Investment thesis recommends shorting Shake Shack due to declining traffic, comp growth, and new unit productivity
• Stock price has surged despite challenges, trading at over 100x earnings
• Uncertain outlook with activist investor no longer involved and unique smashburger being commoditized, raising doubts about sustainability of growth.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Revenue increased by 8.3% YoY, with the EC business rising 7.0% and the Financial business 10.0%.
• Operating profit rose 89.9% YoY, driven by reduced advertising expenses and a decline in SG&A expenses.
• Financial business segment profit increased 48.9% YoY, with external payments handled growing 13.0% YoY to JPY20.1bn.

Focusrite’s (TUNE’s) FY24 results highlight the negative effects of the most challenging year the CEO has faced. While the company’s main operating market has been difficult, management has continued to invest in development and release new products, which have enabled TUNE to outperform and gain share across all markets in FY24, and should enable it to thrive when conditions improve. With signs of stabilisation in its most important segment, TUNE’s valuation looks attractive.

• Grupo Bimbo’s claim is based on the acquisition of Canada Bread Company from Maple Leaf Foods (MFI CN, not covered).
• Bimbo is seeking over CAD$2bn for alleged fraudulent practices, as Canada Bread has been impacted since 2017 due to a price-fixing investigation within the commercial bread industry by the Competition Bureau.
• Subsequently, Canada Bread paid a CAD$50mn fine in 2023.