WHS - Warehouse Group

[percy]

With the workers remaining likely to be paid less Nick could will be earning more than 40 times the median wage of all workers

One thing Nick hasn’t understood in the years he has been in charge is that online isn’t going to save The Warehouse ..just good talking about ‘omnichannel marketing’ ....he’s useless.

That is a matter of opinion.
I do note the "top" retailers ie Hallensteins and Briscoes have been "saved" by their strong online channels.
Hallensteins are targeting 30% of revenue from online,in the not to distant future.
Warehouse need to concentrate harder,ie revenue is increasing on line yet costs/logistics need to improve. .

[bull....]

be no dividend paid now , the PR backlash would be a disaster

[winner69]

Capitalism at work as intended. Staff want higher wages, they have to work harder and smarter to earn them.

.....but The Warehouse will soon find out that ‘capitalism at work’ will piss customers off and then they’ll wonder what went wrong as sales decline

[Panda-NZ-]

Short term hardly matters. This is about setting up for the long term to thrive and remove inefficiencies.

This will help it to compete against offshore tax evading businesses like amazon, ebay etc

[percy]

It is a matter of adapt or die.

[winner69]

Short term hardly matters. This is about setting up for the long term to thrive and remove inefficiencies.

This will help it to compete against offshore tax evading businesses like amazon, ebay etc

I’ve heard WHS management say exactly that many many times over the years

Survival is ongoing as they say ....but they haven’t or a not really adapting to the new world

[Panda-NZ-]

Well, they have survived so far haven't they, esp if you include dividends in the share price too. Some of the expensive debt has been retired recently too.

[dubya]

https://www.stuff.co.nz/business/300060721/950-jobs-to-go-union-says-the-warehouse-using-covid19-excuse

[winner69]

Hope the market reacts favourably to all this good news

Greater profits ...higher share price

[Beagle]

.....but The Warehouse will soon find out that ‘capitalism at work’ will piss customers off and then they’ll wonder what went wrong as sales decline

To be quite honest about it mate I have never gone into a Warehouse and expected even a moderate standard of helpful staff assistance. Cheap prices usually go hand in hand with pretty average customer service don't they ?

[Zaphod]

To be quite honest about it mate I have never gone into a Warehouse and expected even a moderate standard of helpful staff assistance. Cheap prices usually go hand in hand with pretty average customer service don't they ?

Yes the whole big box bulk retail sector is moving that way. Staff are relatively disposable and they run a very tight ship, however margins aren't necessarily low as suppliers are being squeezed until it hurts.

A general question for everyone: Is the intention to open up "The Market" to other companies and independent traders following the Amazon model? At the moment, it appears to be solely focused on Warehouse Group companies.

[artemis]

My very recent 2 visits to a big box discount store - Chemist Warehouse - was excellent. Each time asked for help, and it was delivered efficiently and correctly. So it can be done.

[BlackPeter]

My very recent 2 visits to a big box discount store - Chemist Warehouse - was excellent. Each time asked for help, and it was delivered efficiently and correctly. So it can be done.

Absolutely. I remember over the years quite positive and useful staff support in big boxes like "Mitre 10", Bunnings and Placemakers. Must however agree with Beagle, I can't really remember any time at the Warehouse where staff was able to help with any but absolutely basic questions, though they are normally good in accepting and refunding returns ;):

Maybe just cranking up the salary ("living wage") is not the way to go in order to make staff customer focused and helpful? Maybe it even increases their sense of entitlement (thinking back at my recent warehouse customer support issue as documented in this thread).

[Zaphod]

My very recent 2 visits to a big box discount store - Chemist Warehouse - was excellent. Each time asked for help, and it was delivered efficiently and correctly. So it can be done.

For regulated businesses such as the Chemist Warehouse, I would definitely hope so. Yes it can be done, but it does rely upon both the management and employee's willingness to do it. The living wage might encourage longer term employment, however as more entities adopt the living wage, this advantage could erode.

[artemis]

For regulated businesses such as the Chemist Warehouse, I would definitely hope so. Yes it can be done, but it does rely upon both the management and employee's willingness to do it. The living wage might encourage longer term employment, however as more entities adopt the living wage, this advantage could erode.

The Chemist Warehouse I went to had a tiny pharmacy only section, same as Unichem etc, with a pharmacist behind the counter. Assume that is the only part that is regulated. Big difference from other standard pharmacies as CW is much much bigger.

And on that living wage. Leaving aside the dodgy calculations, The Treasury reported some time back that there were two main sectors that benefit - young single workers and the government (more tax fewer transfers).

[Zaphod]

The Chemist Warehouse I went to had a tiny pharmacy only section, same as Unichem etc, with a pharmacist behind the counter. Assume that is the only part that is regulated. Big difference from other standard pharmacies as CW is much much bigger.

And on that living wage. Leaving aside the dodgy calculations, The Treasury reported some time back that there were two main sectors that benefit - young single workers and the government (more tax fewer transfers).

Yes the pharmacy dispenser portion is very highly regulated, however there are regulations covering advice provided for general treatments so staff need to be highly trained and very careful about what advice they dispense.

That's an interesting comment re living wage. Thanks for that.

[artemis]

Yes the pharmacy dispenser portion is very highly regulated, however there are regulations covering advice provided for general treatments so staff need to be highly trained and very careful about what advice they dispense.

That's an interesting comment re living wage. Thanks for that.

I didn't walk the aisles in the CW, not having a half day to spare LOL, but generally the items on the open shelves were much the same as the supermarket or even, to stay slightly on topic, WHS. Just a bigger range.

[bottomfeeder]

Hope the market reacts favourably to all this good news

Greater profits ...higher share price

Well maybe, but I would suggest closing stores will lessen the foot traffic and turnover of the group. The necessity to close the stores in itself, shows the group is suffering because of covid and competition. As far as a bigger online prsence goes, just hype. There are so many online discount stores operating to compete with that I cant see real growth in that area. The market, I dont se as being revolutionary. Competition on price is a profitable venture only where you have a particular buying power where you can buy a product cheaper, or getting rid of overstocked items. Otherwise you are reducing the profitability. I cant see WHS as a growth stock, just a lot of work to maintain market share. I am holding 5k, but will not be increasing my holding unless the SP goes very low.

[tga_trader]

Well maybe, but I would suggest closing stores will lessen the foot traffic and turnover of the group.

That's my opinion as well. The only time I would shop at The Warehouse, or any of The Warehouse Group for that matter, was because I could physically go and pick it up instantly when I wanted it. If I'm shopping online there are so many other options, and WHS would not be near the top of places I would order from.
In addition to that, the whole point in big box stores is that you walk in, the most common items are at the back of the store, and you grab a whole bunch of other stuff as you walk past. Particularly with the type of junk they sell, and the demographic they market to.


A general question for everyone: Is the intention to open up "The Market" to other companies and independent traders following the Amazon model? At the moment, it appears to be solely focused on Warehouse Group companies.
The Market has heaps of other companies on it. I'm not sure whether WHS takes a cut of each sale or not. I had heard that they don't, and that they rely on people picking up their orders in store and buying more while they're there....which rely' on having physical stores, as per my comments above.

[Beagle]

Its hard to pull the dog sled when you're underwater https://www.bing.com/images/search?view=detailV2&ccid=uwxqB%2bTW&id=88CDA984FA8730DB8C79E78B90C3EE142DE3EB9F&thid=OIP.uwxqB-TWNGukbSfyUZoxuwHaEK&mediaurl=https%3a%2f%2fi.ytimg.com%2fvi%2fEZyDThxp 5W8%2fmaxresdefault.jpg&exph=720&expw=1280&q=beagle+swimming&simid=608018333609559752&ck=32D771AF0CEDBD2FB8A95372E7503E1E&selectedIndex=4&ajaxhist=0

Maybe there's a pot of gold at the end of this rainbow...somewhere...or just a cheap yellow tennis ball from the Warehouse as the bobby prize ?

[winner69]

Reduced staff costs in Red Sheds + Agile savings across the Group + significant online growth = dividend of 25 cents in near term

So at 2 bucks odd now time to get in.

[Beagle]

Reduced staff costs in Red Sheds + Agile savings across the Group + significant online growth = dividend of 25 cents in near term

So at 2 bucks odd now time to get in.

That's a good ramp, the dog sled team will be very happy. Perhaps you'd like to join me as team leader up the front of the pack :)

[Zaphod]

The Market has heaps of other companies on it. I'm not sure whether WHS takes a cut of each sale or not. I had heard that they don't, and that they rely on people picking up their orders in store and buying more while they're there....which rely' on having physical stores, as per my comments above.

I had a good look tonight and you're right. My initial searches were all for electronic items, and that only returned the main group companies.

The strategy for gaining additional sales through in-store pickups is interesting. I do wonder how profitable it will turn out to be. If they did rely on a taking a percentage cut, it could be difficult to attract small retailers whose margins are already tight.

I can't say I'm sold on the concept of what is essentially a virtual shopping mall, and I'm not sure what their major differentiating factor is from their competitors, aside from having all items in the one place, but will keep an open mind.

[Zaphod]

Reduced staff costs in Red Sheds + Agile savings across the Group + significant online growth = dividend of 25 cents in near term

So at 2 bucks odd now time to get in.

It's also down to the execution of the agile methodology and scope definition phase. We've used this extensively in software development and there are numerous pitfalls.

[peat]

dividend of 25 cents in near term



Ya reckon?

11793

I reckon you're very optimistic.
5 years staying the same.
however they do keep trying I'll give them that.

[MarineSalvage]

I just wish I had the confidence in WHS management to do what is needed. They've fussed around the edges for years taking massive salaries and delivered very little. Walmart is key part of many portfolios in the USA at this time - WHS should be our equivalent

[King1212]

I agreed...after these years....the trend has changed n whs still an old dog....

People said....it is hard to teach an old dog a new trick....but an old dog would be just a good companion....just like whs...

[Beagle]

Ya reckon?

11793

I reckon you're very optimistic.
5 years staying the same.
however they do keep trying I'll give them that.

Bit like having an old Labrador that sits on the couch with you that every six months coughs up $800 for every 10,000 shares you own. As long as he keeps that trick up I don't care if he doesn't learn any new ones.

[Biscuit]

Bit like having an old Labrador that sits on the couch with you that every six months coughs up $800 for every 10,000 shares you own. As long as he keeps that trick up I don't care if he doesn't learn any new ones.

Well, we have a young black labrador. Just recently ripped the wife's exercycle seat to shreds strewing shredded foam all over the garden, dug a hole under the fence, tore my gumboots to pieces, several pairs of shoes are missing, has a psycopathic thing about pot plants, and I am pretty sure that isn't money he is coughing up. If you could teach him to cough up money, that would be much appreciated!

[Sir Ten]

Seems odd to me that there was no NZX announcement yesterday

[winner69]

Seems odd to me that there was no NZX announcement yesterday

Nothing really new that wasn’t already out there

Media had a ball though didn’t they ..and even the PM had something to say.

[Beagle]

Well, we have a young black labrador. Just recently ripped the wife's exercycle seat to shreds strewing shredded foam all over the garden, dug a hole under the fence, tore my gumboots to pieces, several pairs of shoes are missing, has a psycopathic thing about pot plants, and I am pretty sure that isn't money he is coughing up. If you could teach him to cough up money, that would be much appreciated!

Ouch, that's definitely coughing up something but its not money ! Maybe talk to your vet about a change of diet or more regular or vigorous exercise ?
Maybe he needs another dog for company...get another one, what could possibly go wrong :eek2:

[stoploss]

Seems odd to me that there was no NZX announcement yesterday

What happened yesterday was announced on June 8, been in consultation with the unions etc since then .....

[bottomfeeder]

Reduced staff costs in Red Sheds + Agile savings across the Group + significant online growth = dividend of 25 cents in near term

So at 2 bucks odd now time to get in.

Blatant upramping!

[bottomfeeder]

Bit like having an old Labrador that sits on the couch with you that every six months coughs up $800 for every 10,000 shares you own. As long as he keeps that trick up I don't care if he doesn't learn any new ones.

Yep, never going to get fitter or better, just struggling to maintain health and fitness. But comfortable.

[Beagle]

Bought for dividend yield and under no illusion regarding capital gains. 16 cents fully imputed = 22.22 cps gross which is 10.8% gross yield @ $2.05. Outstanding !!

[winner69]

Blatant upramping!

Heck mate thats a bit tough

If was going to do some upramping it would have gone along the lines of -

Reduced staff costs + Agile + significant online growth + Noel Leeming winning big time = THE NEW TRANSFORMED WAREHOUSE GROUP = 25 cents sustainable divie in medium termand likely to grow

What you pay for a 25 cent imputed divie? Say 8% gross yield = share price over 4 bucks

May as well get in now.

[bottomfeeder]

Heck mate thats a bit tough

If was going to do some upramping it would have gone along the lines of -

Reduced staff costs + Agile + significant online growth + Noel Leeming winning big time = THE NEW TRANSFORMED WAREHOUSE GROUP = 25 cents sustainable divie in medium termand likely to grow

What you pay for a 25 cent imputed divie? Say 8% gross yield = share price over 4 bucks

May as well get in now.

Didn't mean to be tough. Just feeling down on WHS. A bit of empathy for the career staff losing their jobs. Don't like the up and downs of these type of business decisions.

[winner69]

Didn't mean to be tough. Just feeling down on WHS. A bit of empathy for the career staff losing their jobs. Don't like the up and downs of these type of business decisions.

Tough world these days ...not like old days when had a job for life (no matter how good or bad they were) ...and often drew a decent pension when they retired.

[Panda-NZ-]

Didn't mean to be tough. Just feeling down on WHS. A bit of empathy for the career staff losing their jobs. Don't like the up and downs of these type of business decisions.

There is a temporary covid relief payment though so will not be adversley affected for a while.

[IAK]

Bit like having an old Labrador that sits on the couch with you that every six months coughs up $800 for every 10,000 shares you own. As long as he keeps that trick up I don't care if he doesn't learn any new ones.
Only problem is when old yella develops diabetes, hip displasia, and heart disease and winds up costing you $8000+ in veterinarian bills.

[Beagle]

Only problem is when old yella develops diabetes, hip displasia, and heart disease and winds up costing you $8000+ in veterinarian bills.

$1.200 Vet bill sitting there as the one and only red mark on my portfolio at present. Hope the dog recovers soon :) Hope I'm not leading the pack on a goose chase.

[Biscuit]

$1.200 Vet bill sitting there as the one and only red mark on my portfolio at present. Hope the dog recovers soon :) Hope I'm not leading the pack on a goose chase.

The pack, I suspect, are mostly a motley collection of skeptics and chancers, taking a punt for the fun of it at this stage. Last time I looked, I was down about $80. I expect we will flush something of value out at some stage.

[Beagle]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12350355 Our resident cat opines.

[winner69]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12350355 Our resident cat opines.

Doesn’t seem too impressed with them

Hey beagle - they need to fix this bit -

That means for every $1 a customer spends in store, 2.1c goes to the company and its shareholders. Another 17c goes to staff as wages and salaries.

[Beagle]

In a good year AIR's profit was about 8% of sales so you're right, a 2.1% margin is only a quarter of what airlines with their notoriously skinny margins make !

Higher exchange rate will help but it obvious they really did need to push through these reforms as that net margin is wafer thin.

[Cyclical]

That means for every $1 a customer spends in store, 2.1c goes to the company and its shareholders. Another 17c goes to staff as wages and salaries.


In a good year AIR's profit was about 8% of sales so you're right, a 2.1% margin is only a quarter of what airlines with their notoriously skinny margins make !

Higher exchange rate will help but it obvious they really did need to push through these reforms as that net margin is wafer thin.

Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.

[ratkin]

Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.

They will just add lots of automated tills, and have a few security guards keeping watch.

[percy]

Doesn’t seem too impressed with them

Hey beagle - they need to fix this bit -

That means for every $1 a customer spends in store, 2.1c goes to the company and its shareholders. Another 17c goes to staff as wages and salaries.

17% of revenue for staff wages and salaries.?
I take it your figures are correct.However,I find that figure well above what I would think it should be.
My best guess would be around 12% at the most.As per Ratkin's post,self service should be able to reduce these wage costs to under 10%.KMart seems to made self service work.
Although you have not quoted occupancy costs I would expect them to be also well under 12%,if fact possibly under 10%.
I would guess their [whs] average sale would be well over $30,which makes me think they have a lot of issues to resolve.
There also appears to be big savings to be made in their logistics,as we already know their online overheads are also too high.
Low margins on very high revenue can be profitable, as the likes of McDonalds and Pak 'n Save have proved.
Staff and logistics to meet varying demand.ie daily, even hourly.

[Zaphod]

Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.

Yes definitely does. Not only do the direct costs increase (salary and wages) but so does freight, wholesale purchase costs etc. It causes an avalanche of increases, and because of the timing of the minimum wage increases, means that some suppliers are increasing their costs multiple times per year on a continues basis since Labour's policy kicked in. Many entry level WHS staff are on the living wage which is currently $22.10. Obviously everyone above that also has their hand out,

The consumer is very unforgiving about these necessary price rises.

[Oliver Mander]

Percy, that was part of the point I was trying to make - keep making the changes to reduce the fixed costs and improve net margins. Gross Margins, in context, look quite good...their issues are below the line, and management attempting to address those.

[percy]

Percy, that was part of the point I was trying to make - keep making the changes to reduce the fixed costs and improve net margins. Gross Margins, in context, look quite good...their issues are below the line, and management attempting to address those.

May I apologize for not reading your article.
I find reading The Herald via ChCh libraries "press reader" difficult.
Going from previous posts I see it was 25th July.
I will make an effort to read it.
Sorry didn't get far, as ChCh Libraries Press Reader The Herald is only up to the 24th July.
Will try again tomorrow.

Will you be covering PAZ's 7th August result and update.? lol.

[Oliver Mander]

May I apologize for not reading your article.
I find reading The Herald via ChCh libraries "press reader" difficult.
Going from previous posts I see it was 25th July.
I will make an effort to read it.
Sorry didn't get far, as ChCh Libraries Press Reader The Herald is only up to the 24th July.
Will try again tomorrow.

Will you be covering PAZ's 7th August result and update.? lol.

lol, you never have to apologise for that - I'm only one of many opinions, lucky enough to have an outlet for them, and I'm simply not that good anyway!!
Any you are correct about the cost structure - I did a quick comparison with other retailers (eg, Briscoes) as part of my research for this column, and their ratios (apart from gross margin) look very different. So you're bang on.

the thrust of my point was that they have to keep changing - regardless of what challenges they face from unions and other vociferous stakeholders.

PAZ - probably not, feel like I don't know enough about them yet...but you never know :-)!

[tga_trader]

Sorry I also can't read the article. Does that 17% staff cost get broken down to shop staff vs head office wages?
The main store here can NOT drop any more staff. I had a wander around and there were only 2 staff for the entire shop floor, in one of the largest Warehouses in the country.
Cutting staff to reduced hours is also probably not the best strategy. Surely it's much harder to get and maintain quality staff for a 40hr/week role than if it's only offering 20 hours.

What are the property lease costs as a % of revenue. Probably higher than if they had maintain ownership of their stores?

I personally can't see a way back for The Warehouse. There just doesn't seem to be enough costs that they can continue to cut, especially long term. How many more of these 'agile' restructurings can they really do?

[bottomfeeder]

The only reason they are cutting costs is because they have lower income, and activity. The Warehouse has been going long enough to get their cost structure right. If they hadnt got it right by now, they never will. By making such bold announcements, they show the difficulties they are in. Still holding 5k though. Just a comfort stock. Cant see any real upside though...ever....

[percy]

lol, you never have to apologise for that - I'm only one of many opinions, lucky enough to have an outlet for them, and I'm simply not that good anyway!!
Any you are correct about the cost structure - I did a quick comparison with other retailers (eg, Briscoes) as part of my research for this column, and their ratios (apart from gross margin) look very different. So you're bang on.

the thrust of my point was that they have to keep changing - regardless of what challenges they face from unions and other vociferous stakeholders.

PAZ - probably not, feel like I don't know enough about them yet...but you never know :-)!

Went to the library this morning.Very helpful as per usual."Press Reader" has the article in The Weekend Herald.
An excellent article.Agree with everything you have written.

[Cyclical]

Correct me if I'm wrong here people, but with wages at the bottom going up, and therefore WHS costs, should the prices of their goods be going up accordingly? I'm not really sure on the figures, but if 17.5% of the expenses are staffing costs, and if hypothetically said staff have a 10% wage increase (I assume it's somewhat less than that in reality), then that should be covered by a 2% rise in prices throughout the store, maybe a bit more due to the indirect cost increases in other parts of the chain. Would such a price increase deter customers from going to the red sheds? I doubt it. One would expect their main competitors (eg K-Mart) will be under similar pressures and would love to do the same. After all, surely inflation should impact more than just property prices, right, and with the COL dropping in some helicopter money from the bottom, I'd expect that to ultimately impact consumer goods prices too.

[ratkin]

Went to the library this morning.Very helpful as per usual."Press Reader" has the article in The Weekend Herald.
An excellent article.Agree with everything you have written.

What is this "press reader" Is it the app that is 39.99 per month/? Is it free fr chch library users, and can I access from home.

[percy]

What is this "press reader" Is it the app that is 39.99 per month/? Is it free fr chch library users, and can I access from home.

It is free for ChCh City library members.
Log into ChCh Libraries, using your library card number.Choose your password, and you have access to newspapers and magazines from around the world.
Another free service is you can watch 10 of their free movies a month.That is called Kanopy.
Any difficulties, either South Library ,or Spreydon library will get you up and running.

[ratkin]

It is free for ChCh City library members.
Log into ChCh Libraries, using your library card number.Choose your password, and you have access to newspapers and magazines from around the world.
Another free service is you can watch 10 of their free movies a month.That is called Kanopy.
Any difficulties, either South Library ,or Spreydon library will get you up and running.

excellent, will get on it now

[peat]

wow, was that article Beagle linked to written by Sylvester Cat. Awesome, well done , great article.

It does confirm the headwinds that the sector faces are likely permanent and the ongoing risk TWG faces is whether they can adapt or not so the bet is really whether management can keep up with that, and keep costs down.
There is good support under $2 of course so barring end of the world stuff there is little downside. Still worried about the real bite of the downturn though, and I have a couple of retail stocks already, so a bit meh about the whorehouse as I call it, for my portfolio.

[Beagle]

Our resident cat is turning into quite an accomplished business journalist. I think he's a little too down-beat on WHS though. 3 year pattern of really good support at $2 and 5 year pattern of a minimum of 16 cps in annual fully imputed dividends.

[winner69]

Our resident cat is turning into quite an accomplished business journalist. I think he's a little too down-beat on WHS though. 3 year pattern of really good support at $2 and 5 year pattern of a minimum of 16 cps in annual fully imputed dividends.

Yes Oliver good at writing aimed at the general public rather than real investors. NZ Herald graphics could improve his charts though.

Oliver talked about the groups ‘share of wallet’

If he had delved deeper he would have concluded that the Red Sheds have become less relevant to kiwis over the years. Red Sheds share of wallet has steadily declined for 15 years and even online doesn’t seem to be relevant like in half year report online sales were down 10% in Red Sheds. Their battle to remain viable continues as NZers spend less of their money in the Red Sheds

Noel Leeming and Torpedo at least have some hope.

[percy]

I think investors would have seen his article was spot on.
As you pointed out the Red Sheds have become less relevant,so as his article's focus was they must "cut one's coat to suit one's cloth."
Any serious investor in retail would have seen the big red flag "17% of revenue for staff wages and salaries",yet he was the only person on this thread to seen it.

[winner69]

I think investors would have seen his article was spot on.
As you pointed out the Red Sheds have become less relevant,so as his article's focus was they must "cut one's coat to suit one's cloth."
Any serious investor in retail would have seen the big red flag "17% of revenue for staff wages and salaries",yet he was the only person on this thread to seen it.

A lot of that 17% is Nick and his off siders.

Nick gets about 40 times the median wage of all employers.

At least WHS don’t have Vice Presidents (recall our previous discussions about them) but they seem have quite a few General Managers or the like.

[percy]

A lot of that 17% is Nick and his off siders.

Nick gets about 40 times the median wage of all employers.

At least WHS don’t have Vice Presidents (recall our previous discussions about them) but they seem have quite a few General Managers or the like.
Whether it is Nick or who ever, it is out of control.
It is not sustainable.

Just a guess,but I would think some of those sale lease back deals, will now be proven to have been on too generous terms.Which means either leases are either renegotiated or not renewed.

[Sideshow Bob]

A lot of that 17% is Nick and his off siders.



Over 600 on over $100k at WHS

You'd have to think Rod wouldn't have such a hierarchy.

[percy]

Over 600 on over $100k at WHS

You'd have to think Rod wouldn't have such a hierarchy.

That's incredible.

[Zaphod]

I think investors would have seen his article was spot on.
As you pointed out the Red Sheds have become less relevant,so as his article's focus was they must "cut one's coat to suit one's cloth."
Any serious investor in retail would have seen the big red flag "17% of revenue for staff wages and salaries",yet he was the only person on this thread to seen it.

Taking into account ancillary staffing costs, that percentage is likely much larger.

Staff can be difficult at the best of times and are increasing litigious.

[Sideshow Bob]

That's incredible.

Just had a look, Rod has 67. Much smaller company and WHS has various brands under its umbrella, but still....

[winner69]

Just had a look, Rod has 67. Much smaller company and WHS has various brands under its umbrella, but still....

Rod has at least three brands

[percy]

Rod has at least three brands

Also has Estar doing his online web sites.

[winner69]

Rod has at least three brands

Good on Rod picking gurus to do his web stuff.

[winner69]

Estar have a case study on Bed Bath and Beyond

Cool

https://cdn2.hubspot.net/hubfs/2581275/Content/Case%20Studies/Bed%20Bath%20&%20Beyond%20Case%20Study.pdf?__hssc=211314890.1.15 95894766585&__hstc=211314890.e8ac3946206e38c73e09fe04ac3b4b43. 1595894766584.1595894766584.1595894766584.1&__hsfp=3011158823&hsCtaTracking=b0864f41-2dc7-47bc-b0b0-0cfc74c62698%7C25187824-9eb3-4924-b0cc-e51ad60726a5

[peat]

Rod has at least three brands

and BGR and WHS are about the same mkt cap...

[SCOTTY]

[QUOTE=winner69;832149]Estar have a case study on Bed Bath and Beyond

Cool

[url]https://cdn2.hubspot.net/hubfs/2581275/Content/Case%20Studies/Bed%20Bath%20&%20Beyond%20Case%20Study.pdf?__hssc=211314890.1.15 95894766585&__hstc=211314890.e8ac3946206e38c73e09fe04ac3b4b43. 1595894766584.1595894766584.1595894766584.1&__hsfp=3011158823&hsCtaTracking=b0864f41-2dc7-47bc-b0b0-0cfc74c62698%7C25187824-9eb3-4924-b0cc-e51ad60726a5[/url

[SCOTTY]

Well worth checking out the eStar web site: www.estaronline.com

[bottomfeeder]

I feel thete will be a sell off on monday morning.

[winner69]

I feel thete will be a sell off on monday morning.

Don’t know why there should be but wouldn’t mind some more around $1.50

[percy]

No.1 daughter is looking at changing houses.After a bit of discussion between her and her mother where North is, I decided to buy them a compass each.
My friend Google directed me to WHS $6, and what looked the same at Mitre 19 $11.98.WHS was in my price range,for 2 cents more than the Mitre 10's I could buy two.
Happened to be near Barrington WHS who advised me they were only a small store, and only larger stores such as Eastgate stocked them.
So off to Eastgate I went.Nice lady on her way upstairs for her break, told me very clearly they did not stock compasses.
So once she was out of ear shot, I spoke to the lovely lady on click and collect.
I did point out I did not look up their website,just googled compasses,and saw WHS's advert.Would she mind checking.?
Yes we have them,last stand in the back corner.
Thank you very much.

[Joshuatree]

Thats great service and good for WHS and shareholders. Funny, i discovered just a few days ago free compass app for my cellphone.Also discovered a magnifier tool already on my ph, both very useful

[BlackPeter]

No.1 daughter is looking at changing houses.After a bit of discussion between her and her mother where North is, I decided to buy them a compass each.
My friend Google directed me to WHS $6, and what looked the same at Mitre 19 $11.98.WHS was in my price range,for 2 cents more than the Mitre 10's I could buy two.
Happened to be near Barrington WHS who advised me they were only a small store, and only larger stores such as Eastgate stocked them.
So off to Eastgate I went.Nice lady on her way upstairs for her break, told me very clearly they did not stock compasses.
So once she was out of ear shot, I spoke to the lovely lady on click and collect.
I did point out I did not look up their website,just googled compasses,and saw WHS's advert.Would she mind checking.?
Yes we have them,last stand in the back corner.
Thank you very much.

Just getting them to observe where the sun is around noon (around 12.30) would have saved you roughly $12 :); Anyway - hope they are able to deal with the magnetic declination ...

[winner69]

Some think The Warehouse a pack of bastards

https://www.together.org.nz/warehouse-dotherightthing


Sort of agree ...it’ll hurt them long term ...another sign of terminal decline of the business model.

[bull....]

whs always restructuring yet briscoes hiring talking about record sales says it all

[winner69]

whs always restructuring yet briscoes hiring talking about record sales says it all

....and Warehouse online useless as ...no idea

One day when Red Sheds a non event they might change name of company to Noel Leeming

[bull....]

lol the one bright light

[oldtech]

I hadn't heard of "together.org.nz" before ... I see it's described as:

"Welcome to Together - the online campaigning arm of the New Zealand Union movement"

Uh-huh.

[artemis]

The retail world continues to change so makes complete sense for the Warehouse to also adjust. They seem to be closing low performing stores, reassigning some specialist staff into more general roles, trimming staff at all levels, offering different roster options, and focusing on online sales and fulfillment.

Union is doing its job, trying to keep members in work.

Company owners might legitimately wonder what additional impact minimum wage increases have on decisions.

Easy to start a business in New Zealand. Common enough in the past for laid off staff to start their own enterprise. They have just had a good lesson in cost and risk management, should stand them in good stead.

[nztx]

Count down now to the WHS mid October announcement

Any bets on WHS coming back with Final Div in December, off the previous No Interim in April ?

Will there be a surprise bonus thrown in ?


Last Trading Update was 9 Jul 2020:

https://www.nzx.com/announcements/355968

[Lion_graf]

I would be very surprised if they decided to pay a final dividend after cutting staff. I think the result will be better than expected and a restructure is really what has been needed at the top heavy WHS and will put them in a good footing for the future

[peat]

Did someone say something?
11982

[dubya]

Did someone say something?
11982

Someone must have lol. Up again this morning. Maybe some good news coming in October?

[Beagle]

Our resident cat is turning into quite an accomplished business journalist. I think he's a little too down-beat on WHS though. 3 year pattern of really good support at $2 and 5 year pattern of a minimum of 16 cps in annual fully imputed dividends.

From 27 July 2020, my view is unchanged. I think with the massive drop in interest rates in recent months and the strong current trading outlook from HLG the other day people are joining the dots. It crossed my mind to double down last week. Wish I had done it.

[Beagle]

Our resident cat is turning into quite an accomplished business journalist. I think he's a little too down-beat on WHS though. 3 year pattern of really good support at $2 and 5 year pattern of a minimum of 16 cps in annual fully imputed dividends.

Thinly traded stock, (and quite a while between drinks since the last trading update), so any information leaks could easily move the price quite a bit, so yeah, maybe a leaky ship with results pending ?
From 27 July 2020, my view is unchanged. I think with the massive drop in interest rates in recent months and the strong current trading outlook from HLG the other day people are joining the dots or hearing whispers of information, or maybe both. It crossed my mind to double down last week. Wish I had done it.

If they can maintain their previous track record of 16 cent annual fully imputed dividends that's 22.22 cps gross and a gross yield of just over 10% @ $2.20.

[Sideshow Bob]

I think WHS will likely be held up by the media on the wage subsidy - high profile company, who received more than $55m, then restructured and made redundancies.....bit of red shed bashing......

[winner69]

Must be going to announce a 18 cent divie

Noel Leeming doing it for them

We done beagle on your little investment

[peat]

WHS got mentioned TWICE in the leaders debate tonight as a company that behaved immorally with regard to the wage subsidy.
Collins says she'll claw it back. But Ardern doesn't go that far.
Not a good look.


(does anyone really care though?)

[Snoopy]

WHS got mentioned TWICE in the leaders debate tonight as a company that behaved immorally with regard to the wage subsidy.
Collins says she'll claw it back. But Ardern doesn't go that far.
Not a good look.

(does anyone really care though?)


I don't get what the 'moral' argument is with the wage subsidy and the Warehouse. No-one employed at the Warehouse on the day of lock down lost their job until after the wage subsidy ended, The wage subsidy, as I understood it, was paid in a lump sum. But it all had to be spent on wages eventually. So it wasn't pocketed by the Warehouse. And there were many lock down costs for which the Warehouse received no subsidy. There was never going to be a guarantee that all jobs subsidized would eventually be saved, Some say that these Warehouse redundancies were on course to be made before Covid-19. Are these people suggesting that it would have been better if the redundancies were made at the start of lock down and no wage subsidies were drawn?

SNOOPY

[bull....]

WHS got mentioned TWICE in the leaders debate tonight as a company that behaved immorally with regard to the wage subsidy.
Collins says she'll claw it back. But Ardern doesn't go that far.
Not a good look.


(does anyone really care though?)

both leaders singled out warehouse , cant see how they can do a dividend now without incurring the wrath of the public and govt now.

[ratkin]

both leaders singled out warehouse , cant see how they can do a dividend now without incurring the wrath of the public and govt now.

Every hotel took the wage subsidy and they nearly all laid off their staff afterwards, totally unfair to single out the warehouse.

[bull....]

Every hotel took the wage subsidy and they nearly all laid off their staff afterwards, totally unfair to single out the warehouse.

think they are singling out the warehouse because they took the subsidy then sacked 700 odd people shortly later ( retail in which the warehouse operates has not been affected that much unlike hotels which have due to tourism ) , which effectively means the subsidy was used for severance payments etc against the spirit of what the wage subsidy was meant for to preserve jobs.

[winner69]

Teach them for pissing off the PM early on and saying they were 'essential' and were going to stay open when she told everybody but supermarkets to close their doors

Nick is no PR man

[ratkin]

Teach them for pissing off the PM early on and saying they were 'essential' and were going to stay open when she told everybody but supermarkets to close their doors

Nick is no PR man

Were the Warehouse mislead into believing they were on the list? only to have the govt reverse it due to public outcry?

[Beagle]

I don't get what the 'moral' argument is with the wage subsidy and the Warehouse. No-one employed at the Warehouse on the day of lock down lost their job until after the wage subsidy ended, The wage subsidy, as I understood it, was paid in a lump sum. But it all had to be spent on wages eventually. So it wasn't pocketed by the Warehouse. And there were many lock down costs for which the Warehouse received no subsidy. There was never going to be a guarantee that all jobs subsidized would eventually be saved, Some say that these Warehouse redundancies were on course to be made before Covid-19. Are these people suggesting that it would have been better if the redundancies were made at the start of lock down and no wage subsidies were drawn?

SNOOPY

Well said Snoopy. The broad embracing structure of the wage subsidy was the issue. Basically if your revenue is down by x% for 4 weeks you're entitled to 12 weeks of subsidy.
The way the subsidy was set up was systemically flawed. Pretty rich for the Govt to criticize companies that took the subsidy and were fully entitled to it based on the parameters the Govt itself established. The bungling of who was providing essential shopping facilities was poorly handled but then again the definition of same was always going to be a struggle for the Govt making up policy on the hoof in the middle of a crisis.

Haven't the leaders got anything more constructive and forward looking to debate...

[peat]

Haven't the leaders got anything more constructive and forward looking to debate...

They were answering questions put to them by Patrick Gower so they didnt have much choice ....

Both parties accepted the rules were a bit lax I think, even Jacinda , of course this was Collins angle to criticise the govt implementation - not the wage subsidy itself.
As I've said with RIO (and got some good feedback IRL with that one! ) you cant really expect directors, executives etc to be anything other than business-minded when it comes to situations like this.

[Habits]

Wage subsidy debate got stoked by Mowbray. For that I call him a hypocrite, making massive profits while manufacturing in low wage China... stark contrast

[Beagle]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12369634 Warehouse responds.
"The wage subsidy it received was applied for and used on the basis that it was intended to - to pay employees in companies that experienced a greater than 30 per cent reduction in revenue in April....We were pleased that we could relieve the stress about income for our 11,000 team members at a time of uncertainty by topping up the wage subsidy to pay our team members 100 per cent of their normal pay," the spokeswomen said.

Storm in a tea cup...

[Zaphod]

The eligibility of the subsidy was clearly defined, and AFAIK WHS did abide by this.

In terms of morality, the immoral act would have been to claim the subsidy in a high-trust environment but then not provide this to the employees, but WHS and all businesses that I personally know of kept employees on their payroll and did pay the subsidy to them, which after PAYE/ACC/administrative costs were added, meant these businesses were on the losing side.

What would the PM have said if businesses elected not to take the subsidy (noting that this did not cover the full costs) and instead, made these employees redundant? Is that a more acceptable moral position? Or should the WHS have kept employees in paid employment for positions that were no longer viable? If the later is the benchmark, then perhaps all of our companies have been guilty of corporate immorality at some point during their lifecycles.

[Ferg]

all businesses that I personally know of kept employees on their payroll and did pay the subsidy to them, which after PAYE/ACC/administrative costs were added, meant these businesses were on the losing side.

That is right - rent, power, leases and other overheads didn't stop so the losses were real in April. This was partly offset by the fact the subsidy paid for 12 weeks and the closure was maybe 5-6 weeks. Whether the business "made" or "lost" on the subsidy depended on the base rate of pay and the % paid during lockdown relative to the $585/week x 12. The businesses I work with took it upon themselves to reduce overhead and other costs in anticipation of a sharp reduction in business, which has not (yet) occurred.

Consequently increased local demand with a lower overhead structure has lead to super profits in certain industries - not due to the subsidy, but due to sensible business practices, pent up demand from the lockdown and increased consumption in some industries given the lack of international travel available for Kiwis. Any "moral" argument is groundless given businesses were forced to close their doors with no relief on other costs, and a highly uncertain future. If the business met the criteria at the time then that is the end of the matter. Should they wish to repay the subsidy voluntarily then that is up to the business.

[Sideshow Bob]

That is right - rent, power, leases and other overheads didn't stop so the losses were real in April. This was partly offset by the fact the subsidy paid for 12 weeks and the closure was maybe 5-6 weeks. Whether the business "made" or "lost" on the subsidy depended on the base rate of pay and the % paid during lockdown relative to the $585/week x 12. The businesses I work with took it upon themselves to reduce overhead and other costs in anticipation of a sharp reduction in business, which has not (yet) occurred.

Consequently increased local demand with a lower overhead structure has lead to super profits in certain industries - not due to the subsidy, but due to sensible business practices, pent up demand from the lockdown and increased consumption in some industries given the lack of international travel available for Kiwis. Any "moral" argument is groundless given businesses were forced to close their doors with no relief on other costs, and a highly uncertain future. If the business met the criteria at the time then that is the end of the matter. Should they wish to repay the subsidy voluntarily then that is up to the business.

It was a wage subsidy. Not a subsidy for anything else.

[artemis]

It was a wage subsidy. Not a subsidy for anything else.
Nobody disagrees with that, but the subsidy criteria were based on expected revenue.

[Getty]

And another dividend has bit the dust

[Sideshow Bob]

The Warehouse Group FY20 Unaudited Result and Dividend

8/10/2020, 1:28 pmMKTUPDTE8 October 2020

The Warehouse Group FY20 Unaudited Result and Decision on Final Dividend

The Warehouse Group Limited (“the Group”) today announced its preliminary unaudited result for year ended 2 August 2020.
The Group delivered sales of $3.2 billion, up 3.3% on FY19 or 1.5% when adjusting for FY20 being a 53 week year, compared to 52 weeks in FY19. Group sales in the second half of FY20 were $1.5 billion, up 4.1% on FY19 but flat when adjusting for FY20 being a 53 week year.

The Group full year Reported NPAT was $44.5 million, down 32% on FY19. The Group Reported NPAT includes $67.8 million received in wage subsidies. If Reported NPAT is adjusted to exclude the wage subsidy, the Group would have a made a loss of $4.3 million.

Given the loss prior to the wage subsidy, as well as the continued uncertainty around economic activity and trading outlook, the Group Directors have decided not to pay a dividend for FY20. Subject to trading over the critical Q2 period and any further alert level restrictions and adverse economic impacts of COVID-19, the Group hopes to return to paying dividends in line with its Dividend Policy for FY21.

The Group ended the 2020 financial year with a net cash position of $168.1 million, as a result of strong working capital management and robust trading conditions following the first seven week COVID-19 lock-down period. As the Group returns towards a more normal level of working capital, the net cash balance has reduced to approximately $80 million.

Adjusted NPAT was $80.7 million, including adjustments for unusual items of $36.3 million (after tax), up 9.0% on last year.
The Group’s audited result for the full year ended 2 August 2020 will be released on Thursday 15 October.
ENDS

[winner69]

Bugger no divie for a while

They got to pay out the $68m wage subsidy to shareholders sometime .....otherwise they not playing the game eh

[traineeinvestor]

Given that WHS is being used as a political whipping boy over the wage subsidy, the absence of of a dividend is no surprise - in fact I would have been very surprised if they had paid one.

Need to see the full accounts but I do like the net cash position in the current environment.

[Habits]

Ouch !!! Profit slashed, dividend wiped.. what will the contenders for PM and the know it all NM say now?

[winner69]

Was profit $44.5m or $80.7m or the $4.3m loss

The only thing that’s not confusing is dividend is ZILCH

[DDog]

Do the right thing and the market don't like it

Do the wrong thing and the market don't like it

Can't win either way

[Beagle]

Given that WHS is being used as a political whipping boy over the wage subsidy, the absence of of a dividend is no surprise - in fact I would have been very surprised if they had paid one.


I am pretty sure politics have paid a part in this. Oh well, those on their high moral horses will be really happy.

[Snow Leopard]

Was profit $44.5m or $80.7m or the $4.3m loss

The only thing that’s not confusing is dividend is ZILCH

Obviously the true NPAF (Net Profit After Fudging) is $32.0M [remove the subsidy (profit) as that was unusual and remove the unusual (loss) because they usually do].

[winner69]

I am pretty sure politics have paid a part in this. Oh well, those on their high moral horses will be really happy.

They obviously not offering to pay it back ...so still in retained earnings ...to be paid to shareholders next year ..just a timing issue

[winner69]

The Group ended the 2020 financial year with a net cash position of $168.1 million, as a result of strong working capital management and robust trading conditions following the first seven week COVID-19 lock-down period. As the Group returns towards a more normal level of working capital, the net cash balance has reduced to approximately $80 million.

Probably filled their stores up stock (and/or paid their bills)

[winner69]

Obviously the true NPAF (Net Profit After Fudging) is $32.0M [remove the subsidy (profit) as that was unusual and remove the unusual (loss) because they usually do].

Whatever not much change from the $3.2 billion through the tills

Razor thin operating margin always stresses out a business in times of crisis

[winner69]

Bargain hunters out late in the afternoon

[DDog]

It recovered quick

[winner69]

It recovered quick

Punters realised they are still going to get the subsidy funded divie ...just have to wait to next year

[percy]

Whatever not much change from the $3.2 billion through the tills

Razor thin operating margin always stresses out a business in times of crisis

Sometimes in business,or investing you must ask the question;"why bother".????

Should you come up with a good reason then invest in WHS.
Otherwise look elsewhere.
If you are looking for divie,then there is no divie,then you are back to the original question "why bother".?

[MarineSalvage]

I went to the Botany WHS yesterday over the years it was difficult to find a park near it as it was a holidays shopping destination now it’s just a shadow of its former self, haphazard merchandising, sparse shoppers, overstock of general cheap tat

[Beagle]

I don't think it is a problem for the WHS dog to be hounded by the Beagle, its more likely a problem for our K9 friend that he has sniffed the wind too deeply and is so lustily chasing a tired, old, flea bitten, mutt of a company


Bugger no divie for a while ....my small holding gone (got a reasonable psuedo divie anyway) and put in another retailer

They got to pay out the $68m wage subsidy to shareholders sometime .....otherwise they not playing the game eh

Probably lok ay buying again in March ..but WHS are pretty unreliable

Percy's called it, why bother ? Hundreds of staff on over $100K, dozens on more than $250K, several on more than $1m and the top mutt on over $2m, directors,...all happily being paid while WHS cancels both the interim and the final dividend.

I don't know about others but this outlook statement and conditionality around FY21 dividends does not give me much confidence either
"Given the loss prior to the wage subsidy, as well as the continued
uncertainty around economic activity and trading outlook, the Group Directors
have decided not to pay a dividend for FY20. Subject to trading over the
critical Q2 period and any further alert level restrictions and adverse
economic impacts of COVID-19, the Group hopes to return to paying dividends
in line with its Dividend Policy for FY21."

Hopes is a very different term to one such as "we are confident that" or some such other phrase.

WHS has become the go too scapegoat for greedy self serving sanctimonious politicians to try and extract some political capital...anything to make them look good by giving a very average company a damm good kicking.

Percy's right...why bother ? I sold out today for a very small loss. Its a very healthy thing to get a slight blood nose with one's investments now and again, helps avoid getting too over confident. The truth is there are retailers that are operating vastly better business model's than this tired old brand and prospects at HLG are vastly better going forward in my opinion as is the yield. People like Tim Glasson and Rod Duke have earned the respect of the investment community whereas some of the senior executives at WHS are being grossly overpaid for their extremely poor performance.

Goodbye Warehouse, once bitten, twice shy.

All those people on their high moral horses saying companies shouldn't take the wage subsidy :rolleyes:

Wonder what the resident Snowcat would say ?...probably something like "there's no point crying (howling ?) over spilt milk"...Beagle knows every now and again there's the possibility that not every single rabbit hunt will result in a feed. The trick is to give up when its clear the hunting is simply too much hard work for really slim pickings. Gotta get back up, shake the dust off my fur and get back to the hunt, chasing food elsewhere.

[winner69]

The big loser is going to be all the charities and community activities that the Tindall Foundation support

A lot less to hand out this year ....many tens of millions less

Maybe Stephen now regrets the appointment of Nick Grayston

[Biscuit]

........ Goodbye Warehouse, once bitten, twice shy.,,,,

.

What! I'm the only one left holding the sled!!!!! Oh well, easy come easy go. If the sled Team is disbanding, I'll sell my small holding tomorrow! Up $153 on my $3500 on today's closing price so that's better than my previous encounter with owning WHS.

[winner69]

Latest news just confirms what I've said for some time

The only good thing in the WHS Group is Noel Leeming. Has high market presence in a competitive market and still continues to improve financial performance .... even though profit margin is 3%-4%. Noel Leeming probably worth about $300m if a stand alone business.

Warehouse Stationery is 'there' and thats the best you can say about them. Sharing space in Red Sheds might cut overheads but they risk losing business in doing so.

Well, the Red Sheds have stuff all sales growth over many years, seeing market share (presence) declining year after year and operating margins shrinking to critical levels, In other words a stuffed business model heading to possible oblivion.

And then the huge amount of HQ cost to keep what is really a slow moving train wreck going

As percy says why bother

[winner69]

Beagle the fat cows at WHS

Is truly mazing whats happened since that idiot Grayston started

Done heaps of restructuring and tremendous stuff they say but WHS profits down etc etc etc

But ...

Number of 'team members' earning over $500k in 2015 was 12 in 2015 .....under Nick's reign now 20
Number of team members earning between $200k and $500k was 61 in 2015 ..... now 118

Wow

Note: numbers may be a bit off cause i added them in my head and its still early

[winner69]

and don't forget that in F19 Nick earned about 40 times the median pay of all team members

[Biscuit]

and don't forget that in F19 Nick earned about 40 times the median pay of all team members

OK, OK, can you wait till after ten?

[winner69]

OK, OK, can you wait till after ten?

what happens after ten?

[Balance]

what happens after ten?

He needs to sell a few?

[winner69]

He needs to sell a few?

But after the surge late yesterday share price will probably continue to go up today

The cash still there .....divie still to be paid but next year

[Biscuit]

He needs to sell a few?

Yeah, I'm trying to bank my $153 profit.

[arekaywhy]

Yeah, I'm trying to bank my $153 profit.

At least a couple of jugs in there, nice

[Biscuit]

At least a couple of jugs in there, nice

Yeah, but the price is down today and I refuse to sell at a loss.

[Beagle]

Beagle the fat cows at WHS

Is truly mazing whats happened since that idiot Grayston started

Done heaps of restructuring and tremendous stuff they say but WHS profits down etc etc etc

But ...

Number of 'team members' earning over $500k in 2015 was 12 in 2015 .....under Nick's reign now 20
Number of team members earning between $200k and $500k was 61 in 2015 ..... now 118

Wow

Note: numbers may be a bit off cause i added them in my head and its still early

Its a bloody disgrace isn't it !...and yes, you've been dead right all along mate, the only part of the business worth something is Noel Leeming.

[arekaywhy]

Yeah, but the price is down today and I refuse to sell at a loss.

Similar sentiment here, however, it depends on how large a holding for me. If it is piddling, then I leave it alone and wait. If I have a fair bit on the line, I'll cut and run. This relies on "feels", but pretty much all of my trades have a bit of that in there.

[percy]

When the reason or reasons I brought a share for change [usually for the worst], I sell at market, no matter what I paid .
I try to hold only winners,or extremely high conviction shares .

[winner69]

Its a bloody disgrace isn't it !...and yes, you've been dead right all along mate, the only part of the business worth something is Noel Leeming.

Going to pay many team members (the ones that are left) a living wage ...that’s good

That could mean that nick only gets paid 39 times median wage ...but he might demand to keep relativity

[westerly]

Beagle the fat cows at WHS

Is truly mazing whats happened since that idiot Grayston started

Done heaps of restructuring and tremendous stuff they say but WHS profits down etc etc etc

But ...

Number of 'team members' earning over $500k in 2015 was 12 in 2015 .....under Nick's reign now 20
Number of team members earning between $200k and $500k was 61 in 2015 ..... now 118

Wow

Note: numbers may be a bit off cause i added them in my head and its still early

You should read "Bull**** jobs a theory" by David Graeber. Tim Hazledine had an interesting article on Business Desk on how it applies in NZ.

westerly

[MarineSalvage]

I got my holdings and that of my teenage son out a few months ago with a slight profit - we both bought spark - some gains and a dividend from our new investment - and when we walk around the near deserted red sheds we consider ourselves very fortunate

[winner69]

You should read "Bull**** jobs a theory" by David Graeber. Tim Hazledine had an interesting article on Business Desk on how it applies in NZ.

westerly

But Nick would say he’s totally indispensable and the centre of the universe .....and if there wasn’t a Nick there wouldn’t be so many at WHS doing pointless jobs

[peat]

Even Stephen is leaving

[arekaywhy]

Well...now we know why they didn't pay...it'd be cannon fodder for today

[winner69]

Gave themselves so many ticks it's incredible

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/361487/332944.pdf

[BlackPeter]

Gave themselves so many ticks it's incredible

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/361487/332944.pdf

WOW - they collected $3.9m for charity and they say they went not just through one, but through two restructuring processes this year - that's simply amazing!

They even developed processes "to define future career developments, performance and remuneration". Very impressive!

... and yes, ticks all over the place:

We maintained our Rainbow Tick accreditation and achieved the Accessibility Tick accreditation this year. The representation of females in senior leadership positions increased from 21 in 2019 to 25 in 2020, and we launched “Lean in circles” to provide leadership development and peer to peer mentoring for women to work towards gender equality

Must have been an amazing year. As they say - everybody gets a bargain at the Warehouse :t_up: ;

Never mind the share holders, though - no divie. :ohmy:

[winner69]

WOW - they collected $3.9m for charity and they say they went not just through one, but through two restructuring processes this year - that's simply amazing!

They even developed processes "to define future career developments, performance and remuneration". Very impressive!

... and yes, ticks all over the place:


Must have been an amazing year. As they say - everybody gets a bargain at the Warehouse :t_up: ;

Never mind the share holders, though - no divie. :ohmy:

What's really incredible is the $45m in restructuring costs - after spending $15m in F19

That's $60m in 2 years

Wonder if there will ever be a 'payback' for all this

I might look back (morbid fascination) how much WHS have spent / written over the years

[Beagle]

Come on mate, there's a few Te Reo words in that presentation so shareholders get a free Te Reo lesson, surely that's worth more than 18 cps in annual dividends ;)

[winner69]

See our Nick's remuneration was $2,862,000 = prior year was $1,972,000

He got an LTI of $1,304,000

Median hourly rate of all team members is $21.15 (think that means half of team members earn less that that)

No comment from me

[BlackPeter]

Red and Blue sheds (why don't they do anything about the latter?) just dangling along ...
Noel Leemings doing ok-ish and Torpedo 7 might have potential in a future life.

ROE 11.6% ... not flash, but sort of ok-isch - however the only reason for the still halfway acceptable ratio is the small denominator (low equity).

Liabilities to assets skyrocketed to 79.7%. I know, this funny new accounting standard is not treating them nicely, but still - do they want to become a bank? First step seems to be to accumulate liabilities :p;

I guess this leaves at least hardly any potential for anybody to take over and add debts, but I know, would not work anyway given committed majority share holders;

Intangibles on the balance sheet are not neglectable anymore, leaving an NTA of only 69.4 cents per share.

Not really a Buffet company ... and while they claim to do now "agile"- their load of liabilities (and I suppose as well their so far demonstrated attitude) will hardly allow them to be nimble.

Just saying ...

[Beagle]

See our Nick's remuneration was $2,862,000 = prior year was $1,972,000

He got an LTI of $1,304,000

Median hourly rate of all team members is $21.15 (think that means half of team members earn less that that)

No comment from me

And the owners of the company, the shareholders get nothing and hundreds of staff laid off. That takes morally repugnant to a whole new level !

Board to blame...they're the ones that hired him and allowed this gross debauchery.

[MauroNZ]

When the reason or reasons I brought a share for change [usually for the worst], I sell at market, no matter what I paid .
I try to hold only winners,or extremely high conviction shares .

I wish I read this advice long ago, however I still appreciate it.

[kiwico]

I wish I read this advice long ago, however I still appreciate it.

The argument is that you don't need to be limited to making your money back on the same shares, but can instead make it back on another company.

[MauroNZ]

The argument is that you don't need to be limited to making your money back on the same shares, but can instead make it back on another company.

True, however I originally bought this as a dividend share, at that time I was following my broker's advice to buy this instead HLG in 2013. So it's been a learning for me.

[percy]

The argument is that you don't need to be limited to making your money back on the same shares, but can instead make it back on another company.

I think it was Warren Buffett who said he got 6 out of 10 buys right.
I am not in Warren's league.
What I try to do is hang onto my winners and sell my losers.[yes it really works].
If I need cash out of the market,or want to buy another share, I sell my worst performing share.If it is at a great loss,so be it.
If you do not make mistakes you are an oddity.Learning from them is education.

[peat]

what a funny old world... strong push today

[bottomfeeder]

Pressure on WHS to repay some of its covid subsidy, following Briscoes repayment plans.

[ratkin]

Going gangbusters today, what's going on?

[bottomfeeder]

WHS announce they are going to keep wage subsidies.

[DownTownJr]

Salty that the government didn't see them as essential. Public image is massive, not sure if this is the right move.

[MauroNZ]

WHS announce they are going to keep wage subsidies.

Yes it seems it due to this:

https://www.stuff.co.nz/business/123107912/briscoe-to-pay-back-115m-wage-subsidy-after-strong-sales

[nizzy]

Craigs have moved WHS to overweight with 12mth TP of $3.00. Forecast divis restart with F21 0.22 cps, which wld deliver 9.5% yield on todays price.

[MauroNZ]

Craigs have moved WHS to overweight with 12mth TP of $3.00. Forecast divis restart with F21 0.22 cps, which wld deliver 9.5% yield on todays price.

Good to keep it for the records, thanks for sharing.

[bottomfeeder]

A lot of commentators think they know whats going on. I dont think anyone really knows what is around the corner.

[Teatree]

Can't agree more. What I do no is I have 7k in a savings account and got 22 cents net for it last month. Have to find somewhere more fruitful to plonk it. I'm sure there's lots in my position

[Beagle]

Craigs have moved WHS to overweight with 12mth TP of $3.00. Forecast divis restart with F21 0.22 cps, which wld deliver 9.5% yield on todays price.

Just a word of caution. They have paid no dividends for the last year and while it might be plausible they can pay 22 cps next year as a result of the spare cash flow from their lengthy dividend holiday it should be noted that the previous 5 years they averaged 16 cents per annum.

I remain of the view this is a very poorly managed company with far too many people being grossly overpaid for well below average performance.
$3 looks completely unrealistic to me. https://www.marketscreener.com/quote/stock/THE-WAREHOUSE-GROUP-LIMIT-6491364/financials/
I note the average analyst view is for eps of 17 cps in FY21. $3 suggests a PE of 17.6 which would put it on an earnings multiple significantly above the very well respected retail operators like Briscoes and Hallenstein Glasson. Ask yourself how plausible that sounds ?...for example I have HLG on a forward PE of just 12 and currently growing sales at nearly 11% with a dividend yield of 12% gross. I did hold a small amount of WHS until very recently which I sold to reinvest in HLG.

[jimdog31]

Just a word of caution. They have paid no dividends for the last year and while it might be plausible they can pay 22 cps next year as a result of the spare cash flow from their lengthy dividend holiday it should be noted that the previous 5 years they averaged 16 cents per annum.

I remain of the view this is a very poorly managed company with far too many people being grossly overpaid for well below average performance.
$3 looks completely unrealistic to me. https://www.marketscreener.com/quote/stock/THE-WAREHOUSE-GROUP-LIMIT-6491364/financials/
I note the average analyst view is for eps of 17 cps in FY21. $3 suggests a PE of 17.6 which would put it on an earnings multiple significantly above the very well respected retail operators like Briscoes and Hallenstein Glasson. Ask yourself how plausible that sounds ?

They have also sunk alot of money into online plays that aren't working. $30 million into themarket.com.

[winner69]

They have also sunk alot of money into online plays that aren't working. $30 million into themarket.com.

And a $14m loss expected in F21

and they say break even in two to four years ...which is code for never?

[bottomfeeder]

Not investing in WHS after announcement CEO gets a $1.4 mill payrise. What was that for. Oh yeah, applying for a wage subsidy when the govt was throwing money around and not paying it back. Oh and, laying off a lot of staff. He should be taking a pay cut. Am even removing the WHS from my watchlist.

[Sideshow Bob]

The Warehouse Group - Departure of Chief Operating Officer20/10/2020, 3:52 pm ADMINAuckland, 20 October 2020
The Warehouse Group - Departure of Chief Operating Officer
Chief Operating Officer Pejman Okhovat has resigned from The Warehouse Group to take up a senior executive position with an overseas retailer and he will leave the business in the new year. Pej joined The Warehouse Group in 2005 and has held a number of senior operational and executive roles including most recently CEO, The Warehouse and Warehouse Stationery and Chief Operating Officer, The Warehouse Group.
“Pej has played a key role in improving the performance of The Warehouse and Warehouse Stationery over the last few years and was instrumental in developing and implementing the strategy of everyday low prices, significantly growing the online business of both The Warehouse and Warehouse Stationery, and structuring the Red and Blue sheds to deliver a great omnichannel retail experience to our customers,” says Group CEO Nick Grayston. "Pej was also pivotal in enabling The Warehouse Group to trade through COVID during the level 4 and 3 lockdowns earlier in the year. On behalf of the Executive and the Board I would like to thank Pej for the significant contribution he has made over the past 15 years and wish him all the best in his new role.”
Pej says, “it’s with mixed emotions that I have decided to leave The Warehouse Group after 15 years and take up a new opportunity. It’s been a privilege to work for The Warehouse Group and I look forward to watching the Company successfully deliver on its ongoing transformation and strategy to help Kiwis live better every day. I want to personally thank Nick, the executive team and the board for the support they have given to me over the years.”
This announcement is made pursuant to Listing Rule 3.20.1.

[winner69]

Way the WHS shareprice rocketing up it's going to be one of the stars of the NZX - or at least the best retail stock

Recent high was 250 - probably surpass that by Christmas

As an aside was in Noel Leeming getting a new cable to recharge ipad - they couldn't sell it to me as eftpos wasn't working and I had no cash --- so went round the corner to Warehouse Stationery which sits uncomfortably in a big Red Shed and found one. Was $20 cheaper but at least the group got my $13

[Beagle]

I've had internet connectivity issues all day, driving me nuts !
WHS on a considerably higher forward PE than HLG, warranted ?

[winner69]

I've had internet connectivity issues all day, driving me nuts !
WHS on a considerably higher forward PE than HLG, warranted ?

WHS doingbthe AGILE thing ....that’s worth a premium PE

[Beagle]

Sure it is, where's my Tui ?

[Habits]

Way the WHS shareprice rocketing up it's going to be one of the stars of the NZX - or at least the best retail stock

Recent high was 250 - probably surpass that by Christmas

As an aside was in Noel Leeming getting a new cable to recharge ipad

I was in NL needing dw and smart TV... the dish drawer on display at 1700 had no stock at all (?) and the Sony super smart discounted 600 had a 4 day wait time for them to transfer it. Ordered the Sony. I also went to warehouse upstairs and bought a 399 dw as it was to go in a rental... lets hope it does breakdown too soon

[Zaphod]

There are numerous supply chain issues with whiteware, and tech products in general. We are waiting on a specific model of LCD monitor from a wholesaler that usually has numerous units in stock, and they have indicated that it could be well into Q1 before any supplies arrive.

House flicking/renovations, shipping issues & associated fast-rising costs, working from home etc. have all had a significant impact.

[percy]

I brought the grand daughter the latest Apple I pad from Leemings.Paid upfront.Was not sure whether it would take a month, or three months to arrive.
Grand daughter was happy it arrived three days later.
Hurt not receiving my "Gold Card" or any other discount.
On the Panasonic TV I brought a month ago ,I went back to the salesman, as I thought I had received too big a discount.No "Gold Card" discount.Correct amount charged.Leemings' price was less than Harvey Normans',then I received the big "Gold Card" discount from Leemings. Huge difference in their prices.
Never bothered checking prices with "Smiths".

[nztx]

Sure it is, where's my Tui ?


I forgot where I left my truck .. am I too late for the thing doing agile ? ;)

[Sideshow Bob]

Good sales growth for T7 and Noel, Red Sheds not so much.....

https://www.nzx.com/announcements/363182

The Warehouse Group First Quarter Sales Update

13/11/2020, 9:08 amMKTUPDTEAuckland, 13 November 2020
The Warehouse Group First Quarter Sales Update

Highlights
• Group sales of $738.5 million, up 6.3% on Q1 FY20
• Strong sales growth particularly for Noel Leeming, up 11.5%, and Torpedo7, up 41.8%
• Same store sales growth across all brands
• Online sales growth of 58%, representing 11.3% of Group sales for the quarter

The Warehouse Group today reported sales for the first quarter ending 1 November of $738.5 million, up 6.3% on the same quarter last year. Gross margin percentage has also been strong, up circa 170 basis points on Q1 last year.
Group CEO Nick Grayston said the result is a positive start to FY21 and continues the sales momentum of the final quarter of FY20.

“The business is trading well, particularly given the uncertain and unpredictable economic environment and we are now focused on continuing this momentum as we head into the second and largest summer trading quarter, said Mr Grayston.

As we saw at the end of the FY20 year, Group online demand continued to grow in the first quarter of FY21 with sales of $83.7 million, up 58% compared to the same quarter last year. Online sales as a percentage of total Group sales increased from 7.6% to 11.3%, with all Group brands experiencing significant online growth.
The Warehouse recorded sales of $379.5 million in the quarter, up 2.9% on the same quarter last year. Sales increased by 8.1% on a same store sales basis, driven mainly by sales growth in the toys, leisure and outdoor categories. Of all the brands, The Warehouse was the most impacted by the second Auckland lockdown from 12 August 2020 to 30 August 2020. During the quarter, the previously announced store closures of Johnsonville and Dunedin Central occurred. The Dunedin Central store was also converted to a dark store to support online sales fulfilment in the region.

Warehouse Stationery recorded sales of $61.8 million in the quarter, a decline of 1.9% but up 0.5% on a same store sales basis. The Store-Within-A-Store programme continued, with the six stores completed being Masterton, Whanganui, Oamaru, Riccarton, and Te Awamutu. This brings the total number of SWAS stores to 23.

Noel Leeming reported sales for the first quarter of $250.8 million, an increase of 11.5% compared to the same quarter last year. Quarterly same store sales increased 9.1%. There was sales growth across all categories, with particular strength in Computers, Communications and Whiteware. During the quarter the previously announced store closure of Tokoroa occurred.

Torpedo7 recorded very strong sales growth, with a 41.8% increase to $33.8 million on the same period last year and a 39.2% increase on same store sales. These sale numbers do not include 1-day, which has previously been reported as part of the Torpedo7 Group. Categories that performed strongly in the second half of FY20 continue to perform well, including Cycle, Outdoor and Watersports. There were no new store openings in this quarter.

TheMarket.com has now been operating a full year since August 2019. Now hosting over 4,000 brands and more than two million products, sales through the platform for Q1 were in line with expectations. For the quarter, TheMarket.com achieved over 1 million monthly sessions which is up over 300% relative to the same quarter last year.

Group inventory levels have continued to build since the FY20 year end and though our inventory levels are down on this time last year, we remain confident that we can meet our customer needs. As has been the case for most retailers, COVID-19 has required additional measures to be taken to ensure there are sufficient inventory levels to meet customer demand during the peak trading period. However, there may be some specific categories in the Torpedo7 and The Warehouse brands that are impacted by delays in international shipping.

As in previous years, the earnings outlook for FY21 will be dependent on the critical second quarter
trading period and earning guidance will be considered on announcement of the Group’s interim results.

The Annual Shareholder Meeting will take place on Friday 27 November 2020.
ENDS

[percy]

A very positive announcement.
Augers well for their peak trading 2nd quarter.

[Sideshow Bob]

A very positive announcement.
Augers well for their peak trading 2nd quarter.

Supply could be an issue for some products - not just affecting WHS, but all retailers.

Shipping in (and out) of NZ currently is problematic, with delays due to port strikes in Australia and also port congestion (particularly at POA). Vessels are also missing ports and MSC and Maersk have put surcharges on POA shipments. Not sure about importers, but 2-3 weeks delays would not be uncommon for exporters.

[Habits]

I brought the grand daughter the latest Apple I pad from Leemings.Paid upfront.Was not sure whether it would take a month, or three months to arrive.
Grand daughter was happy it arrived three days later.
Hurt not receiving my "Gold Card" or any other discount.
On the Panasonic TV I brought a month ago ,I went back to the salesman, as I thought I had received too big a discount.No "Gold Card" discount.Correct amount charged.Leemings' price was less than Harvey Normans',then I received the big "Gold Card" discount from Leemings. Huge difference in their prices.
Never bothered checking prices with "Smiths".

Wow... gold card courtesy of a certain Winston Peters

Also I have noticed warehouse doing a lot of TV advertising, including for The Market for 'singles day', no i don't watch a lot of TV either. Daughter was curious about TM she didn't know anything about it and had not looked at it but had seen it come up regularly online.

[Habits]

Anyone notice the logo on the side of Team NZs new boat .... TheMarket.com .... interesting. At the same time Trademe is doing advertorials and interviews, they're obviously suffering

[Jaa]

Yes Habits! Surprised me too. Got be worth millions that spot on the boat. Lady Tindall even got to swing the champagne!

Trademe no longer a kiwi owned company so maybe a good move by The Warehouse.

[jimdog31]

Yes Habits! Surprised me too. Got be worth millions that spot on the boat. Lady Tindall even got to swing the champagne!

Trademe no longer a kiwi owned company so maybe a good move by The Warehouse.

The market has lost $30 million thus far (approx), whats a few more?!

[Jaa]

The market has lost $30 million thus far (approx), whats a few more?!

Worked for Amazon :)

[jimdog31]

Worked for Amazon :)

Amazon Advertised on a yacht?

But seriously, themarket isnt going to ever make money.

[ratkin]

Decent shareholder discounts this year, applies to the red sheds, Torpedo, stationary and online with the market. Up to 20% extra off whatever is the lowest price

[winner69]

Maybe Carl should think about working in horticulture .....plenty of jobs and money in that I’m told

Good to read that Joan and Nick do a lot of ‘empathising’

Doubt whether Nick has lost any sleep over stuffing peoples lifes up ..he understands that staff are just a commodity, something Carl has got learn.

https://www.stuff.co.nz/business/123531198/the-warehouse-employee-tells-board-he-has-25-for-groceries-after-roster-changes


wonder if Carl’s nose job was on company subsidised medical insurance

[winner69]

I bought a set of chopping boards like Carl mentioned ....yes a set of 4 all individually wrapped and then put in fancy cardboard outer.

Good on you Carl to point out to management that they are not as good as much as they make themselves out to be be.

[Habits]

Maybe Carl should think about working in horticulture .....plenty of jobs and money in that I’m told

Good to read that Joan and Nick do a lot of ‘empathising’

Doubt whether Nick has lost any sleep over stuffing peoples lifes up ..he understands that staff are just a commodity, something Carl has got learn.

https://www.stuff.co.nz/business/123531198/the-warehouse-employee-tells-board-he-has-25-for-groceries-after-roster-changes


wonder if Carl’s nose job was on company subsidised medical insurance

Apply away ... in hort workers, are paid on a performance basis

[winner69]

You’d think The Warehouse would not be that keen on the signage / logo The Safety Warehouse uses ....esp after their great cash giveaway promo didn’t go as planned today

Use of ‘Mega’ and orange bit resembles Mitre 10

[Brain]

You’d think The Warehouse would not be that keen on the signage / logo The Safety Warehouse uses ....esp after their great cash giveaway promo didn’t go as planned today

Use of ‘Mega’ and orange bit resembles Mitre 10

They are running close to the wind. They should have called themselves the Wharehouse and if they had a Maori board member they would be home and hosed.

[Habits]

Daughter showed me how to watch Freeview on demand using my Warehouse bought tv.... we have two tvs but I didn't know that Freeview on demand was so easy to turn on and so good to use... get to watch all the programs I've missed including America's Cup racing from during the week. The thing I noticed was the logo "themarket.com" in plain view on the hull of Team NZ and beside the Toyota sponsor logo.. this must be great advertising for themarket.com which indeed is the Warehouse group. I bet if Rod could have got this for Briscoes he would have snapped it up but he couldnt. Well done Warehouse group. Oh and well done Team NZ for a being a class act on show to the world.

[winner69]

Well done Warehouse Group in repaying the wage subsidy ...all $68m of it

Puts a couple of cash rich listed retailers to shame

Hope they get some goodwill out of it

[percy]

Well done Warehouse Group in repaying the wage subsidy ...all $68m of it

Puts a couple of cash rich listed retailers to shame

Hope they get some goodwill out of it

Yes well done WHS.

[Balance]

Well done Warehouse Group in repaying the wage subsidy ...all $68m of it

Puts a couple of cash rich listed retailers to shame

Hope they get some goodwill out of it

Wondering if the government will show some goodwill to taxpayers by getting Trevor Mallard to repay the $330k (plus more to come) charged to us all after he destroyed a person’s life.

And how about returning the election bribe of $100m from the Maoris to fix maraes when they are already sitting on billions of dollars of settlement money.

What a load of humbug.

[bull....]

whs probably out perform HLG now. well done whs

[Balance]

whs probably out perform HLG now. well done whs

Your mate Trevor Mallard contacted you yet about the $330k?

[Habits]

Does anyone have forecast interim figures before and after subsidy repayment..if the subsidy is to be repaid then it should come from employees as the funds were paid to them via the employer, not for the employers use. But don't tell me whs will not have enough funds to repay the subsidy as well as a 6 month dividend and if so then its bad news again. Full year dividend foregone too from earlier in the year so doesn't that indicate the company is losing money. Which is another reason to not invest in companies despite what economists try to say about investing in the productive economy vs the non productive housing sector. Warehouse shareprice is down from 3 dollars precovid to 2.55 so the repayment is a bit of a joke to appease hypocritical pollies and others. Am looking to exit some positions soon as a result of this. Some pollies tell us they want to slap on an asset tax... that'll be the day

[Balance]

Well done Warehouse Group in repaying the wage subsidy ...all $68m of it

Puts a couple of cash rich listed retailers to shame

Hope they get some goodwill out of it


You forgot to add the bit about still laying off staff as soon as the subsidy ended.

Excellent point - in case anyone thinks WHS is such an honourable entity.

[ratkin]

Well done Warehouse Group in repaying the wage subsidy ...all $68m of it

Puts a couple of cash rich listed retailers to shame

Hope they get some goodwill out of it

They should have kept it after being stitched up over lockdown opening. Although the wild price swings did enable me to buy a heap in the 1.50s on lockdown day.

[Habits]

The warehouse had better be paying a dividend next time round... shareholders have lost share value as well as lost income from the previous two(?) announcements. So that's a double whammy. We are relying on the income

[RTM]

Well done Warehouse Group in repaying the wage subsidy ...all $68m of it

Puts a couple of cash rich listed retailers to shame

Hope they get some goodwill out of it


Yes well done WHS.

Completely agree. Maybe the others will eventually "get it".

[Balance]

Completely agree. Maybe the others will eventually "get it".

How many staff did WHS laid off after the subsidy ended?

[RTM]

How many staff did WHS laid off after the subsidy ended?

Pretty sure that was going to happen anyway Balance, Covid or no Covid.

[Beagle]

How many staff did WHS laid off after the subsidy ended?

1,000 or was it more ?

[nztx]

https://www.nzx.com/announcements/365451


'The Group’s financial position has continued to improve from year-end and we expect the half-year’s net cash balance to be better than the FY20 year-end position of $168m.

Full Year guidance will be issued when the H1 financial results are released in March.'

may even be a small divy next year there - for winner but who knows .. ;)

think the market has been smelling large incoming Ca$h in the Retail Sector of recent times .. ;)

[Habits]

600 as per October report but then air nz laid off 3500 and who says anything. Warehouse still seems to overstaff imo compare the number of floor staff you see next time you're there with the numbers, at other large retailers.

[winner69]

Tom the cartoonist on management and marketing things always been very perceptive over the years.

Hope Nick wasn’t like this but then Nick is Nick so maybe he background said let’s go for it

[ratkin]

600 as per October report but then air nz laid off 3500 and who says anything. Warehouse still seems to overstaff imo compare the number of floor staff you see next time you're there with the numbers, at other large retailers.

I do not understand the antagonism towards the warehouse, sure they laid people off, but they needed to. Most of those complaining about the lay offs do not even shop there. Perhaps if they did the layoffs might have been avoided.

As usual hypocrisy is rife, buy everything online from overseas then complain when well loved shopping brands go out of business or cut staff numbers.

[winner69]

Bit more from Tom Fishbourne on 'Agility'

I don't think 'agility' will fix The Warehouse because they don't really know what it means - but that's just my view
'
Anyway what Tom said -


Next month marks the 20th anniversary of the Agile Manifesto. Twenty years ago, 17 software engineers went skiing in Utah. After bonding over their shared frustrations on the state of software development, they drafted the Manifesto for Agile Software Development.

The principles they defined helped change software development forever, but also inspired more widespread organizational shifts. As the signers later put it,

“This isn’t merely a software development problem, it runs throughout Dilbertesque organizations.”

David Hieatt recently said that agile principles helped get his two businesses through the twists and turns of 2020:

“Agile was no longer a nice management mindset, but how you saved your business. It bypassed adjective and went straight to a verb.”

And yet, in spreading so mainstream, the concept of agile has lost much of its meaning. Like many business buzzwords, if you ask 10 co-workers what agile means, you may hear 10 different responses (or even more).

One of the 17 original signers of the Agile Manifesto, Dave Thomas, wrote:

“The word ‘agile’ has been subverted to the point where it is entirely meaningless.”

For agile to stand for more than a buzzword, we have to define what we mean.

[Greekwatchdog]

Nice upgrade https://www.nzx.com/announcements/365993

[DDog]

From $70m to $90m. Wow.

[winner69]

From $70m to $90m. Wow.

And double same period last year

Nick finally got things working properly ...I better start praising him :t_up:

[JohnnyTheHorse]

What a great result. I expect this news to flow into other retail stocks too (who will probably upgrade guidance in the next couple of weeks). BGP, MHJ, PGW, HLG...

[bull....]

good to see there doing well , i expect they be paying a big dividend next time. paying back the subsidy was probably making this more appropriate

[JohnnyTheHorse]

good to see there doing well , i expect they be paying a big dividend next time. paying back the subsidy was probably making this more appropriate

I believe paying the subsidy back really held the price back on the that last profit upgrade in Dec as meant no dividend. But this extra $20m+ for the half year should clear that now.

[ratkin]

Great result and margins looking good. They have a decent stable of assets, and the online market tying it all together. They may also be helped by the massive delays in buying anything from overseas, easier to buy your junk at the warehouse.

[winner69]

Share price smashes through the 3 buck mark

Next stop 4 bucks

[ratkin]

Share price smashes through the 3 buck mark

Next stop 4 bucks

very suprising how quickly sentiment can change, heading back to the glory days of 7 dollars (only joking)

[winner69]

very suprising how quickly sentiment can change, heading back to the glory days of 7 dollars (only joking)

Maybe not 7 dollars ratkin ....


.....but 5 dollars perfectly possible seeing how things are going

[Habits]

Maybe not 7 dollars ratkin ....


.....but 5 dollars perfectly possible seeing how things are going

Thats over 60 percent up from current sp... big lift esp with suspended dividends

[ratkin]

Maybe not 7 dollars ratkin ....


.....but 5 dollars perfectly possible seeing how things are going

yep in this crazy market anything is possible. They will be helped enormously by the massive delays in buying from overseas, easier to just shop locally now. I know the couriers are seeing massive increases in overnight courier product from the likes of the warehouse group.

[Clints]

"They will be helped enormously by the massive delays in buying from overseas"

Where do you think they get most of their stock?

[Habits]

"They will be helped enormously by the massive delays in buying from overseas"

Where do you think they get most of their stock?

Ummm overseas? You're absolutely right clints but more relevant is that somebody buying a one-off online purchase could end up frustrated if there are delivery delays. Warehouse group stores will already have most/all their stock on hand ready for the season selling.

[ratkin]

"They will be helped enormously by the massive delays in buying from overseas"

Where do you think they get most of their stock?

They seem to be keeping their supply chains going although there is likely some disruption. Point is customers will now buy whatever is there, as it is overnight delivery at the latest, rather than buy something in China that can now take literally months to arrive.

[Tomtom]

Bit more from Tom Fishbourne on 'Agility'

I don't think 'agility' will fix The Warehouse because they don't really know what it means - but that's just my view
'
Anyway what Tom said -


Next month marks the 20th anniversary of the Agile Manifesto. Twenty years ago, 17 software engineers went skiing in Utah. After bonding over their shared frustrations on the state of software development, they drafted the Manifesto for Agile Software Development.

The principles they defined helped change software development forever, but also inspired more widespread organizational shifts. As the signers later put it,

“This isn’t merely a software development problem, it runs throughout Dilbertesque organizations.”

David Hieatt recently said that agile principles helped get his two businesses through the twists and turns of 2020:

“Agile was no longer a nice management mindset, but how you saved your business. It bypassed adjective and went straight to a verb.”

And yet, in spreading so mainstream, the concept of agile has lost much of its meaning. Like many business buzzwords, if you ask 10 co-workers what agile means, you may hear 10 different responses (or even more).

One of the 17 original signers of the Agile Manifesto, Dave Thomas, wrote:

“The word ‘agile’ has been subverted to the point where it is entirely meaningless.”

For agile to stand for more than a buzzword, we have to define what we mean.
I would argue that in software development it does mean something and is a tool that can be applied to some types of projects. However when you hear things like "Our IT department is moving to an agile approach to work" you can be very certain that those people have no idea what they are doing. It's about fitting the right tool to the right problem, agile for agiles sake would be wasteful and slow in many cases.

It's the latest in a long line of these business fads where they start off meaning a specific principal but get so broadly abstracted as to be meaningless. Then the data comes in and it turns out adopting that approach produces no meaningful benefit for organisations because it's so poorly applied. I suspect many people already know this but need to keep up the corporate cheerleading for the sake of their careers.

[winner69]

The current surge in the WHS shareprice is really stupendous and it hasn't stopped yet .... onwards and upwards I hope

I still have a morbid fascination with things WHS and keep old stuff up to date

I've updated this table - one I created years ago to remind myself that no matter how tempting WHS looks as a long term buy and hold investment it rarely is.

It is one stock that defies the 'it's about time in the markets, not timing the markets' principle. Staying in WHS for long periods has not been that great a strategy - but timing the market has been very profitable.

But then again there has not been many years buying WHS has produced above average results - and buying a year ago (or like ratkin in March last year) might have been one of those times.

The table shows annual returns over many periods. It assumes you bought in July each year (WHS year end) and the returns include dividends.

Read as if you bought in July 2006 at $4.74 your 1 year return was 31.8% (timing the market) but if held until today your 15 year return has been 2.0% pa (time in the market not good)

Lots of red cells (negative returns) and a lot of orange cells (<5% pa returns) and not many green cells (above average returns)

Probably boring as and relevant for most as these days things are different ........but I find it interesting - just an insight from my morbid fascination with some things.

[Habits]

The current surge in the WHS shareprice is really stupendous and it hasn't stopped yet .... onwards and upwards I hope

I still have a morbid fascination with things WHS and keep old stuff up to date

I've updated this table - one I created years ago to remind myself that no matter how tempting WHS looks as a long term buy and hold investment it rarely is.

It is one stock that defies the 'it's about time in the markets, not timing the markets' principle. Staying in WHS for long periods has not been that great a strategy - but timing the market has been very profitable.

But then again there has not been many years buying WHS has produced above average results - and buying a year ago (or like ratkin in March last year) might have been one of those times.

The table shows annual returns over many periods. It assumes you bought in July each year (WHS year end) and the returns include dividends.

Read as if you bought in July 2006 at $4.74 your 1 year return was 31.8% (timing the market) but if held until today your 15 year return has been 2.0% pa (time in the market not good)

Lots of red cells (negative returns) and a lot of orange cells (<5% pa returns) and not many green cells (above average returns)

Probably boring as and relevant for most as these days things are different ........but I find it interesting - just an insight from my morbid fascination with some things.
Great work W69
Just to clarify, I'm assuming the 2020 year still has six months to run until July 2021.. so it has potential to be the best performing year yet, mostly just the rebound. The company also seems very much stronger in terms of financial performance (higher gm on higher t/o) so I think that has not been factored in yet

[winner69]

Great work W69
Just to clarify, I'm assuming the 2020 year still has six months to run until July 2021.. so it has potential to be the best performing year yet, mostly just the rebound. The company also seems very much stronger in terms of financial performance (higher gm on higher t/o) so I think that has not been factored in yet

Yep just assumed July share price will be $3 odd ....so maybe a lot more to go.

Exercise also also highlights the old adage of buy when PE is high and future returns aren’t that great ....and vice versa

[MauroNZ]

The current surge in the WHS shareprice is really stupendous and it hasn't stopped yet .... onwards and upwards I hope

I still have a morbid fascination with things WHS and keep old stuff up to date

I've updated this table - one I created years ago to remind myself that no matter how tempting WHS looks as a long term buy and hold investment it rarely is.

It is one stock that defies the 'it's about time in the markets, not timing the markets' principle. Staying in WHS for long periods has not been that great a strategy - but timing the market has been very profitable.

But then again there has not been many years buying WHS has produced above average results - and buying a year ago (or like ratkin in March last year) might have been one of those times.

The table shows annual returns over many periods. It assumes you bought in July each year (WHS year end) and the returns include dividends.

Read as if you bought in July 2006 at $4.74 your 1 year return was 31.8% (timing the market) but if held until today your 15 year return has been 2.0% pa (time in the market not good)

Lots of red cells (negative returns) and a lot of orange cells (<5% pa returns) and not many green cells (above average returns)

Probably boring as and relevant for most as these days things are different ........but I find it interesting - just an insight from my morbid fascination with some things.

When I bought I was firmly believing on "time in the market" and WHS has been my worse experience. I always says my learning increases everyday so in that regard last March it was hard for me to figure where the bottom was (to all the shares that I have in my watchlist). Neither I'd have thought of a recovery when I sold out a few months ago.

Anyway, I still keep learning.

[bull....]

things lining up for a great result and my guess div of 10 - 15c as a reward to s/h who have stuck with the company

[BlackPeter]

things lining up for a great result and my guess div of 10 - 15c as a reward to s/h who have stuck with the company

Whatever the dividend will be, it will be for any shareholder at registration date, has nothing to do with whether they stuck with the company for years ... or just bought them :):

But yes, I suppose most retailers will have a good result after this Christmas and a post-covid catchup ... though it is in my view not clear whether this allows extrapolations into the future.

[ratkin]

Whatever the dividend will be, it will be for any shareholder at registration date, has nothing to do with whether they stuck with the company for years ... or just bought them :):

But yes, I suppose most retailers will have a good result after this Christmas and a post-covid catchup ... though it is in my view not clear whether this allows extrapolations into the future.

The Market has obviously had a major boost from covid, was very much a backwater platform before 2020 but has now entered the consciousness of the online buying consumer, so there should at least be some positives going forward. The stronger NZ dollar will also be helpful, although that will not last forever.

[bull....]

The Market has obviously had a major boost from covid, was very much a backwater platform before 2020 but has now entered the consciousness of the online buying consumer, so there should at least be some positives going forward. The stronger NZ dollar will also be helpful, although that will not last forever.

nzd will remain strong , money printing by US will keep there dollar weak and nzd strong

[bull....]

Whatever the dividend will be, it will be for any shareholder at registration date, has nothing to do with whether they stuck with the company for years ... or just bought them :):

But yes, I suppose most retailers will have a good result after this Christmas and a post-covid catchup ... though it is in my view not clear whether this allows extrapolations into the future.

agree most retailers should do well. im picking noel leeming as the standout if gerry harvey comments are anything to go by in regards to harvey norman. as far as the future i dont see covid going away in a hurry as vacine roll out will take a lot of time hence retailers should continue to do well next couple years at least

[bull....]

special div announced nice

[mikeybycrikey]

This special dividend feels a little weird to me. No indication in the announcement of when it will be paid, and we're only about 7 weeks out from the interim results. Nice that it is being paid but just slightly weird handling of it.

[nztx]

This special dividend feels a little weird to me. No indication in the announcement of when it will be paid, and we're only about 7 weeks out from the interim results. Nice that it is being paid but just slightly weird handling of it.



Not really - look at the announcement again:

https://www.nzx.com/announcements/367112

No date given - would expect it soon for Special dividend

"Given this elevated trading performance and following the decision not to pay a dividend for FY20, we have now decided to pay a special dividend of 5 cents. “

and then here's reference to Interim Div 2021 - in past years paid in second week of April:

"A decision on an interim dividend has yet to be made and will be announced with the H1 result on 25 March."


Have to give them time to dot the i's cross the 't's' sign the Board Resolutions and fire the filings off to NZX
on these things .. ;)

Remember HY 2021 has probably been really good too
The Special is FY 2020 - where no Div was being paid previously at all before now

So basically two lots of good news in todays release for Holders ..

[nztx]

Special Div dates announced on NZX today - 5.0 cps fully imputed

Ex Div 16 Feb - Payment date 4 Mar

https://www.nzx.com/announcements/367294

[bull....]

Special Div dates announced on NZX today - 5.0 cps fully imputed

Ex Div 16 Feb - Payment date 4 Mar

https://www.nzx.com/announcements/367294

nice 5 cps shortly.
my pick is a 10cps dividend to be announced shortly with results as well and would be based on historical norms as well and signal conviction in there opinion of the future performance of the group.
retail may pick up even more once the increase in savings is unleased.

[bull....]

JB HIFI just released results in AUS. amazing standout appliances , computers etc , so i stick to my belief noel leeming and to lesser extent tepedo 7 will be stand outs in overall good reults.

[winner69]

JB HIFI just released results in AUS. amazing standout appliances , computers etc , so i stick to my belief noel leeming and to lesser extent tepedo 7 will be stand outs in overall good reults.

Noel Leeming only decent part of WHS group.