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Thursday, October 08, 2015 4:12:54 PM
Zalemark could NEVER achieve their projected sales this year of $53,000,000. It's just crazy. And to think they could estimate an after tax profit of $24,000,000 is ludicrous. This isn't a pharmaceutical company that just received a patent on a new miracle cure drug. It's just a so called jewelry company that acquires licenses but doesn't sell jewelry. It sells hype through its press releases to inflate the stock price. Warren Buffet owns a few large jewelry retail companies along with a huge jewelry manufacturing concern that does have legitimate licenses and sales and they all work on slim profit margins. Don't believe ANYTHING that Zale of ZMRK tells you.
Too much money, time and effort has gone into Zalemark's marketing strategy of acquiring brands that can translate into jewelry. Very few companies can pull it off. BUT, if you have a successful track record and a marketing plan that includes a serious budget for promotion then it can be done. Merchants like to see successes. That's why in any field, one of the first things that a buyer will ask is; "show me your best sellers", and "who is selling this". No one wants to caught with non salable inventory. Plus no major retailer would EVER trust a company just on their word. But both Crayola and M&Ms did. There is no question about that in my mind. They will come to regret that, just like Hearst Corporation did.
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