SSH Holdings Inc. (Spencer Spirit)

Overview Key strengths Key risks Largest player in the specialty Halloween pop-up retail sector. Operates in a highly competitive and fragmented industry that includes mass retailers. Good brand recognition and ongoing expansion of geographic footprint. Highly discretionary product mix, susceptible to declines in consumer spending. Relatively conservative financial policy. Substantial volatility in quarterly profitability and cash flow driven by seasonal concentration and dependance on Halloween. The company reported total revenue growth of 6.3% during the first nine months of 2022 compared to 2021, which we believe was supported by a strong Halloween season and increased store count for the Spirit business, slightly offset by a mid-single-digit percent sales decline at Spencer. Consumers continue to actively participate in Halloween season festivities,

...SSH Holdings Inc.'s (Spencer Spirit) revenue has continued to increase, albeit at a moderated pace amid a volatile operating environment. The company reported total revenue growth of 6.3% during the first nine months of 2022 compared to 2021, which we believe was supported by a strong Halloween season and increased store count for the Spirit business, slightly offset by a mid- single-digit percent sales decline at Spencer. Consumers continue to actively participate in Halloween season festivities, and the company has outperformed our base case in each of the past two years. We believe ongoing supply chain constraints continue to alleviate some competitive pressures as big box retailers pulled back on Halloween merchandise to focus on the holiday season. We...

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