8 days after a meaningless ASX release about its online performance, PKA entertains us with another release late Friday where it displays consistency in avoiding publishing its actual online revenue.
Consider this revelation about its online sales classification in the release: "To assess the performance of the revised strategy, management now attribute online sales revenue as that which is generated from the online store and which does not have any obvious or reported dependency on an offline channel or event."
Really, who would have thought that? Is management clever or what? Sheer business genius!
Let me please repeat this because its invaluable business advice: "management now attribute online sales revenue as that which is generated from the online store" Classic textbook maxim to all struggling entrepreneurs.
Its gets better:
Drumroll...
"In absolute dollar terms, online sales revenues for October and November 2016 are not substantive, however, they represent a part of the business that is scalable and capable of substantial growth, which is the focus of the newly refined, ROI based marketing plan."
Now cast your mind way back to 8 December 2016 ASX release euphemistically titled "PLUKKA PERFORMANCE UPDATE" where PKA was pleased to announce "over the past two months Plukka has seen strong YoY growth in online performance, with a notable uptick in online sales. Combined online sales for October and November 2016 were strong with revenue up 315%* over the same period in 2015. Likewise, the overall conversion rate for October and November 2016 showed an improvement of 131%* over October and November 2015".
Combined online sales for October and November were strong ... but not substantive.
However, they were up 315% on the same period in 2015! So online sales were better than 3 times an insignificant amount a year earlier! And PKA only spent $6 million and the loss of founder, erstwhile MD, then Creative Director focussed on sales, Joanne Ooi, a key personnel (PKA's words from its Dec 2015 prospectus, not mine) to achieve this stunning result.
PKA reassures the market "Online sales ... represent a part of the business that is scalable and capable of substantial growth, which is the focus of the newly refined, ROI based marketing plan." Key words "scalable", "capable of substantial growth" fitting in exquisitely with PKA's cunning focus of its newly refined ROI based marketing plan.
PKA tells it how it is in its ABOUT PLUKKA blurb "Plukka is a global, bricks and clicks retailer for creative and fashion-forward fine jewelry. Founded in 2011 as a discovery machine for jewellery, Plukka has evolved into a sophisticated ecommerce platform, supported by offline retail operations, that is actively disrupting the highly fragmented, but growing jewellery market world-wide".
PKA's evolved into a sophisticated ecommerce platform with insubstantial sales.
There's more. PKA's given the market an early Xmas bonus with a glimpse of its upcoming App4(c) for the DecQ 2016. "Unaudited sales revenue from offline and online channels during October, November and December (month to date) 2016 is approximately US$590,000." This revenue figure must be what's meant by "substantial" as the online sale component was not substantial.
And how did PKA achieve this result?
"Plukka held 4 trunk shows during the period in South Korea, Taiwan, Hong Kong and London, which complemented the Hong Kong and Burlington Arcade boutiques. In addition, the Hemei joint venture in New York provided a strong public relations platform for the brand, with an additional 7 trunks shows held in the New York boutique"
*17 venues across 3 continents for average sales per venue of $US34,706 in 2 and a half months! Amazing performance. Hats off to the PKA team.
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