Lost money in this stock a couple of years ago, I like and use their products for skiing but they are too reliant on good seasonal sales for me to ever be a shareholder again. PS-There is plenty of competition now in the winter market.
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Sure is mate. Some of those jackets we saw at Queenstown were stupidly cheap at the mountain warehouse. https://www.mountainwarehouse.com/nz/
Pleased to be out and shall retreat to my kennel and lick my wounds from this one.
It was a great Christmas for a few retailers.Lucky to be up 5% plus.
It was a modest Christmas for most.Lucky to be the same or minus 5% on last year.
It was a very difficult for a lot of retailers.Minus 5% to minus 15%.
KMD's business model has never appealed to me.Sale prices are what I would call normal retail.
You can fool some people some of the time,but not all of the time.
Thoughts....If first half results are so heavily dependent on the summer sale I think Mr Simonet's comment is disappointing and unfortunate.Quote:
Sales for the 15 full weeks to 11 November 2018:
o Kathmandu total sales growth +8.4% at constant exchange rates*1
(excluding Oboz);
o Kathmandu same store sales growth +6.3% at constant exchange rates;*1
o Same store sales growth by country: Australia +7.1%, New Zealand
+5.2%.
OBOZ
For the first quarter of FY2019:
o Oboz sales NZD $15.7m at a gross margin of 39.8%;
o Remain on track to achieve the US$7.1m EBITDA earn-out target for the
2018 calendar year.
Kathmandu's Chief Executive Office Xavier Simonet said "we have seen
continuing demand for core Kathmandu products, following on from a successful
winter last year. We are also pleased with the continuing strong performance
of Oboz and integration into the Kathmandu Group."
Mr Simonet added "we have achieved good sales growth leading into the key
Christmas trading period, and we expect first half profit to be strongly
above last year. However, as always our first half-year result is highly
dependent on the success of our Summer Sale."
Better to be more conservative with the language like some more seasoned retailers comments isn't it ! Something like this would seem to be more appropriate.
"Sales for the first 15 weeks provide encouragement but its too early in the season to give any indication of profitability for the first half".
No way HLG would have lead shareholders up the garden path like that is there...
His credibility has taken a hit at least in my eye's. So...leading on from that I can't help wondering, when is the oboz acquisition going to be eps accretive or even profitable ?...couldn't really get any handle on that from the annual report or the annual meeting transcript ? This seed of doubt about how this was handled puts the lack of transparency regarding the earnings of the Oboz acquisition into question. On the face of it the gross profit margin of 39.8% is well below that for the rest of the company's products and on only $15.7m sales I wonder how they worked out the purchase price of $US60m base price plus up to another $US15m earn out ?
This acquisition was stated to be expected to be mid single digit accretive to eps when the share placement was announced in March 2018 to fund it. One wonders why shareholders are not being told if this is profitable yet and if it is mid single digit earnings accretive to eps then why does it appear that eps growth is headed towards being negative ? Something doesn't seem to add up here ?
Don't think I'll go barking up this tree again anytime soon. Once bitten, twice shy !