FL Q3 FY24

Folks (FL) reported total operating revenue of $1.961 billion on November 2, 2024. While the year-on-year change rate cannot be calculated, this data reflects the company's performance in the market. Analyzing the absolute value of operating revenue and possible influencing factors is crucial to understanding the company's financial situation.

## Key Financial Data

1. Total Operating Revenue: Folks' total operating revenue is $1.961 billion, indicating a certain level of income in the market.

2. Operating Revenue in 2023: The operating revenue in 2023 was $8.168 billion, indicating a decrease in revenue compared to the same period last year.

3. Market Demand: Folks is facing challenges in market demand, including the impact of the pandemic, supply chain issues, and inflation.

4. Marketing Strategy Changes: In 2024, the company changed its marketing strategy, simplified operations, and focused on core brands.

5. Product and Market Expansion: Through the acquisition of high-growth companies like WSS, Folks expanded its customer base and market coverage.

# Industry Comparison

1. Overall Industry Analysis:

- According to 2023 data, Folks' total operating revenue was $8.168 billion, while in 2024 it decreased to $1.961 billion, indicating the company still needs to assess its market performance in the overall industry decline. If the overall industry performance is good, then the specific issues of Folks need to be analyzed.

2. Peer Comparison Analysis:

- Although Folks' operating revenue is higher than some competitors, its declining trend needs attention. Compared to competitors like A.K.A. Brands and Lulu's Fashion Lounge, Folks' competitiveness and strategy adjustments are particularly important in the market.

# Conclusion

Folks' total operating revenue, while showing a certain market performance, has significantly decreased compared to last year, indicating the company may be facing sales pressure. Fluctuations in market demand, increased competition, and adjustments in marketing strategies are key factors affecting its revenue. The overall economic environment and changes in consumer behavior cannot be ignored.

# Opportunities

1. Market Adaptability: Folks' expansion of its market share through the acquisition of high-growth companies (such as WSS) has the potential to increase sales in the future.

2. Digital Transformation: Continued digital transformation and a direct-to-consumer strategy can help attract younger consumers.

3. Brand Partnerships: Partnerships with the NBA can enhance brand influence and attract more customers.

# Risks

1. Economic Environment Uncertainty: Factors such as the pandemic, supply chain disruptions, and inflation may further impact consumer spending.

2. Increased Competition: The performance of competitors in the same industry may put pressure on Folks' market share.

3. Marketing Strategy Risks: If marketing strategy adjustments fail to effectively attract consumers, it may lead to a continuous decline in operating revenue.

Through the above analysis, we can gain a more comprehensive understanding of Folks' financial situation and the opportunities and risks it faces, providing a reference for future investment decisions.