Strategy in TECH...
LVMH, the global owner and marketer of luxury goods carrying some of the most prestigious brands, reported on Tuesday strong first quarter 2021 sales growth that handily exceeded even the most optimistic forecasts of market analysts. This is yet another encouraging sign of a significant rebound in consumer spending – especially with the type of consumer who tends to be the primary customer base for the custom integration channel.
Last Thursday, Onkyo notified the Tokyo Stock Exchange that its latest forecast for fiscal 2021 results shows that – despite their best efforts – the company remains insolvent. It was a disappointing announcement, as it means that the company’s well thought-out plans to return to solvency failed. So what happens now?
SnapAV announced today that they have acquired HCA Distributing, expanding their footprint of local distribution outlets around the country. HCA was founded in Denver, CO and eventually expanded to a second outlet in Salt Lake City, UT. The announcement of the acquisition was made by Trevor Hansen, SnapAV’s manager of their Volutone business unit.
Foxconn, a Taiwanese company said to be the world’s largest contract manufacturer of electronics and Apple’s biggest supplier, announced on Tuesday that due to the global shortage of semiconductors they have been forced to reduce production of iPhones. It was a surprising admission of just how extensive the chip shortage has become – that it is impacting Apple, one of the biggest companies in the world with virtually unparalleled buying power.
Sound United, parent company to a wide range of audio lines, announced this week that it has hired Trip Randall, a former executive with sneaker & sports gear maker Nike, to be the new President of Denon. The company says this move is part of their plan to “revitalize marketing” at Denon. They also say they are looking to “boost direct-to-consumer sales” as well as several other initiatives.
On Tuesday, Sonos held a major investors event that started off with the introduction of their new Roam portable speaker. But the real purpose of this event was to provide investors information on their financial performance. And stock analysts and the media got quite a show – and a few surprises – as the company revealed their formula for success.
Melrose Industries Plc has announced that their financial results for fiscal 2020 and it wasn’t pretty. The company swung to a net loss on lower revenues. They said this was mostly due to the Coronavirus pandemic’s massive impact on its GKN Aerospace division. To streamline operations and raise cash, Melrose told the press that it has again put Nortek up for sale.
This week, AudioControl said it has awarded Market Share, a manufacturer sales representative firm, its 2020 Rep of the Year for their home audio products division. Market Share is based in the Pacific Northwest and covers the entire region, including Alaska.
That an exposition company lost money in 2020 is not surprising. That an exposition company (Emerald) that has cancellation insurance to cover lost revenues on every show they own that was cancelled during the year – and still lost $633.6 million in fiscal 2020 – is surprising.
On Wednesday after the close of markets, Sonos announced that it had turned in a record first quarter in their current 2021 fiscal year with revenues up, profits up, long-term debt down and new records set in several performance categories. In fact, actual performance came in so much stronger than the company had originally anticipated, that after just this first quarter of the year they announced they were revising and raising their guidance for their anticipated revenues and profits for the remainder of the fiscal year.
