Building Model for Consumer Retail Company
I'm building a model for a consumer company that does business internationally through both wholesale and DTC channels but does not hedge for FX. They disclose the constant currency growth for total revenue every quarter and show the constant currency adjustment for the IS, but they do not do the same for the segment level detail (DTC and Wholesale). My question is how do I account for the FX given it is largely unpredictable or do I just stay with the segment level build of DTC and Wholesale growth and essentially ignore FX on a segment level?
We have the growth of volume and price for DTC and Wholesale every Q but no specific units and they rarely equal the total segment revenue growth, too. It seems like we have a lot of incomplete information here.
Bump, but I don't really think there is a way to account of FX in this case.
Appreciate the reply, this is my thinking but just want to make sure I’m not missing anything/anybody has an idea for why price growth + unit growth =\= revenue growth in this case
They can get revenue from other sources. Scope, Fx etc.
Normally just have a currency matrix imported from BBG with weights. We don’t forecast it, just track it in real time and rely on mgmt comments.
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