"Woke" Gillette Loses $8 Billion!!

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1,373
Location
London
From the guy's statements their controversial new direction was a business decision to regain awareness with the intentions of increasing sales.

“It was pretty stark. We were losing share, we were losing awareness and penetration, and something had to be done,” Coombe said. He said Gillette decided to “take a chance in an emotionally-charged way.”

Just looking at it from a purely financial perspective the company chose a strategy that was very unsuccessful. $8 billion in loss in market value is a significant one.
 
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53
Location
Dorset
This isn't a loss but a write down, i.e. adjustment of company value based on a valuation of goodwill and intangible assets.

The reasons quoted (devaluation of international currencies v the dollar, competition from subscription clubs and less men shaving regularly or at all) all seem fairly reasonable to me. Shareholders appear to think this a good thing, with a 4% surge in share price.

P&G no doubt have other reasons to publicly back the write down, such as creating a deferred tax asset, or even to take a bath so that future years can compare favourably to this one. Not always a bad move.

Guess it all just depends on where you get your media from.


 
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