Specialist
Former VP at Authentic Brands Group LLC
Agenda
- Authentic Brands’ value proposition and market opportunity
- Implications of Reebok acquisition, highlighting potential merits and drawbacks
- Long-term growth opportunities in verticals beyond lifestyle and entertainment licensing
Questions
1.
What’s your 12-18-month outlook for ABG’s [Authentic Brands Group’s] business?
2.
How has ABG’s business evolved on the back of the pandemic?
3.
What near-term impacts on ABG are you expecting from the new COVID-19 Omicron variant? Could any of its revenue streams be at risk from new variant uncertainty?
4.
Which of ABG’s owned brands would you call its crown jewel?
5.
What has changed in Brooks Brothers’ approach to its operating model that makes you feel positive about
it?
6.
What pricing or multiple would you give Brooks Brothers if it were put up for sale today?
7.
How would you describe ABG’s approach to brand acquisition and licensing? What is the typical lifecycle of the brands and companies it owns? What typically happens post-brand-acquisition and how does it reshape or modify the brands’ original approach to its operations?
8.
What are your thoughts on Sparc – a model that ABG developed with Simon Property Group?
9.
Which more notable competitors have been trying to emulate the Sparc model, to no avail?
10.
What’s the most challenging aspect of developing a model such as the Sparc one?
11.
What are the risks or potential holes in the Sparc model?
12.
You highlighted ABG’s asset-light model, and this is also disclosed in the S-1 it filed. How is it able to achieve an asset-light model given the vast ownership of some of these players across industries? Is it by virtue of offloading the onus of capital across manufacturing and inventory to its partners?
13.
What do you think are the merits and drawbacks of ABG’s Reebok acquisition?
14.
Why wasn’t Adidas able to unlock Reebok’s value, which ABG seeks to unlock under its ownership? Adidas was able to grow its namesake label under its playbook, so clearly the know-how was there.
15.
Some have quoted that part of Reebok’s demise under Adidas was having too many products and distractions from its core product suite. What are your thoughts on this?
16.
What key tools in ABG’s toolbox give Adidas a chance to reignite a brand that’s fallen out of favour with
consumers?
17.
What might be the challenges for Reebok to garner cultural relevance? Does it rest on the tech, partnerships or sponsorships? Does it flood the brand with athletes and team sports?
18.
One of Reebok’s bright spots is arguably its licensing agreement with the NFL. Could ABG bring this back to the table for Reebok?
19.
What are the key risks or potential missteps for ABG in reviving Reebok? There are a few challenges that
have to be tackled, including Reebok itself and investing in classic or new styles.
20.
Are there any lessons learnt from ABG’s prior actions with brands that had a similar uphill battle?
21.
What additional brands could ABG bring into the fold?
22.
Is it always the case that troubled brands would consider ABG to acquire them and vice versa?
23.
ABG’s CEO, Jamie Salter, has called for strong brands with real estate exposure and international footprint
to acquire. Is this always the case?
24.
What parallels would you draw between Reebok and competitors such as Fila and Converse, which have
had relative success in relying on brand nostalgia to resonate with young consumers and their parents?
25.
Is it too far-fetched to think Reebok could make a dent in the sales of another competitor, such as Nike,
under ABG?
26.
What other long-term opportunities could ABG pull with Reebok? Are there any product verticals that Reebok would never put its brand behind that might change under ABG’s ownership?
27.
Which brands under ABG’s portfolio might no longer fit under its ownership? Which brands might be a
distraction to its future efforts with Reebok?
28.
How would you respond to someone who believes Reebok is beyond repair and despite ABG’s track record
of buying and reviving tarnished brands it may be a stretch?
29.
Do you have any thoughts around ABG’s management team?
30.
What longer-term key risks should we monitor around ABG over the next 3-5 years? Is there anything
investors should fundamentally understand beyond ABG’s attractive cash flows and ROI and how ABG might
consider growing?
31.
What is the telling sign of a brand that isn’t pulling its weight within the ABG portfolio?
32.
Do you have any closing thoughts or is there anything you’d like to highlight?
