Text commented by Luís Felício - Executive Director of Galeazzi & Associados

Back to basics!

Tok&Stok has implemented a series of measures with the goal of "getting back on track" precisely with this spirit.

As I have consistently argued in my publications, I believe that doing the basics well is one of the most fundamental actions. And, according to the news, this has been the strategy of Ghislaine Dubrule in the last six months since she returned to the company's leadership.

Does the owner's involvement make a difference for the success of the business? Being there, closely monitoring the routine? Sometimes, yes! Many successful companies have something in common: the strong presence of entrepreneurs, especially in the early stages of growth and consolidation. They become the reason for the company's existence when they are very focused.

What is on the list of basics done well at Tok&Stok? Among several actions mentioned by Dubrule in the interview with Valor Econômico, a few caught my attention:

• The possible merger with the competitor Mobly: which, to me, is a delicate action but can be a viable solution if well-structured.

• The choice of financial leverage by the controller: a safer option, as long as the debt levels are suitable for cash generation.

• The closure of 17 stores, including 14 smaller ones within shopping centers: reviewing the locations is an obligation. If small stores don't work, they need to be closed. Unfortunately, it involves layoffs, but it is inevitable in such a restructuring.

• The absence of expansion plans for 2024: correct. There is no way to grow in the current situation of the company.

Regarding the other proposals: let's follow up and see how it goes...

Regardless of the chosen strategies, I am rooting for Tok&Stok to "get back on track" with the basics done well.

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