Greece-based Folli Follie issued an angry response on Friday in response to a particularly negative report by Quintessential Capital Management (QCM) on the international company, which designs, manufactures and distributes higher-end jewelry, watches and fashion accessories.
The ASE-listed company's share price tumbled up to 30 percent following release of the report.
In its reaction, Folli Follie called the report baseless, slanderous and damaging for its businesses interests, while hinting at legal action.
QCM pointed to six main points in basing its results, namely, what it claims a significantly smaller number of sales points; major storefronts cited on the company's website that have actually closed (FF Soho, FF Madison Avenue); a smaller presence on the Internet and social media, especially relative to competitors in Asia; financial results showing increased cash infusions into Asian subsidiaries; only two Chinese subsidiaries (Fu Li Fu Lei and Binlianyun), with total revenues of 40 million USD and 50 sales points when FF refers to one billion USD in revenues for all of Asia; and finally, replacement of the Baker Tilly consulting and auditing firm with a relatively unknown company, Ecovis.
