I expect them to take a hit on revenue as well, and for the same reason. Now they have brand name recognition so that is a buffer, they have more stores which is another buffer, but they will see a hit. And just from what I read on their chat board it seems they had a large sale ongoing, that is a hit on revenue. I am interested to hear their thoughts on the call tomorrow.
To me the question is - did CWBHF do something that minimized their drop in revenue growth (maybe they didnt see a drop at all which would prove me dead wrong) that our management was blind too? Depending on the numbers and company's thoughts on the market and regulatory issues affecting it tomorrow, it may be that CWBHF has brilliantly pulled off some great business move (that would have resulted in much better numbers for us) because their management team is better.
Until all of that unfolds I can't say one way or the other. I just have a hard time believing 1,000s of new companies many of which are giving products away for free to get shelf space will not affect them. They are a premium brand and carry a premium price, just like us. Unlike us they grow their own crops and have national brand name recognition due to the Dr. Sanjay Gupta piece on legalization of cannabis back in 2014 (lots of coverage in print and other media including tv followed). Besides that I dont see any huge differences between the businesses. And that is why I think they will take a major hit just like us, theirs may not be as bad as ours, but it will not be pretty.
Looking forward to the call.
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