CORAL SPRINGS, Fla., May 5, 2017 /PRNewswire/ -- The following is a statement from Kanen Wealth Management LLC:
Dear NWY Management & Board of Directors:
We are deeply disappointed with your shallow and superficial response to our recent letter and 13-D filing. What's disappointing is your clear expression that the current plan, path, and trajectory is sufficient. You state that you merely need to add a board member "with expertise in new or growing areas of our business, such as E-Commerce, Omni-Channel or Digital, in order to provide a unique and fresh perspective". Perhaps more talent in the "new or growing areas of our business" would be beneficial, but what's alarming is you seem to be oblivious to the most important point and fact that I have been trying to make. It is THE REASON you have a losing record and a stock price that has declined more than 75% in approximately 4 years: YOU HAVE A NEGATIVE 1.66% OPERATING MARGIN! It was 33 basis points 4 years ago, and despite your "operating initiatives" and "Project Excellence", it has declined meaningfully. I urgently exhort you to contemplate deeply your primary failure: to increase gross profit to a satisfactory level and to trim operating expenses. After carefully meditating on this most important issue, I would ask you to please repeat the process! Hopefully, after this exercise, you will come to the clear and stark reality that costs need to come out of our business, both in cost of goods, as well as operating expenses. (cost of goods is well below peers)
Enough is enough! For more than 4 years, as shareholder value has been eroded, executive management and the board have not participated in our sacrifice to a corresponding degree. We insist "minority shareholders" must be represented, and a special committee must be formed to address the most important issue destroying our value. (failure to adequately reduce costs) We sincerely hope you will cease your discrimination and horrible treatment of us minority shareholders, and finally heed to our voice with action! We thank the many minority shareholders that have reached out to us in support.
David Kanen, President
Investment Advisor Representative
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SOURCE Kanen Wealth Management LLC