I actually found that quite remarkable considering the last 7 weeks of Omicron in NZ, Australia must have rebounded quite nicely.
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HLG are smart operators and Im sure we can look forward to an improved outcome from the next 6 months.
The growth in digital sales is impressive and will help insulate them from the negative impact of Covid.
Hopefully freight costs will at least stabilise if not reduce and new store openings in Oz will also assist the result.
A few initial thoughts.
eps came in at just on 20 cps and looks to be about 40 cps for the year so the FY22 PE is 16.5 but this is based on trough year earnings.
Growth in online sales to ~ 33% is impressive and provides a solid platform for further expansion without incurring significant overhead.
Its clear that their growth is going to come from Australia and they're targeting that. (This half ~ 63% of profit was from Australia)
There appear to be implications for the level of imputation that will be attached to future dividends.
Nice to see the gross margin improvement so they are managing the supply chain challenges very well.
A very well managed company that will rebound and grow nicely over time, especially when Covid finishes but who knows when that might be ?
I can't help noting that WHS provides a superior yield 9.1% gross (based on 21 cps for the year 100% imputed) and their dividends are fully imputed. HLG is 6.3% Gross yield, (based on 2 x 18 cent dividends 50% imputed) FY22 PE is about 11 on WHS...is HLG worth another 5.5 PE for a current year 16.5 ? compared to WHS is this tough market ? Hmmm and can HLG maintain a ~ 50% imputation credit level going forward with only 37% of their profit coming from N.Z. which might reduce even further in the coming years ?
Long term HLG has better prospects but in the short term the yield difference for income investors is quite stark and definitely favors WHS.
In addition in tough times, (cost of living crisis), are WHS basic products more in demand or HLG ? You folks be the judge, I don't know.
The Beagle is Bang on the Bones !
But HLG has still got strong growth potential and one wonders if in fact its better own in AUS dollars for the future.
Aus still has a ECO set for growth and its banking sector is not going to be constrained by T1 at 16%.
It just going to have a higher velocity of money in its ECO.
Excellent summary.
Online exciting .Aussie Glassons super exciting.
WHS vs HLG.I can not see young fashion following dudes and dudesses, who are huge spenders ,being seen dead in WHS apparel or shoes.
No mention of US online sales.
I very much feel HLG's business model is excellent,while WHS are still trying to find theirs.Would point out they have been trying for years,and are still very trying...lol
LOL yeah its no secret that I have the upmost respect for how HLG manage their business and as the oldest listed company on the NZX its weathered all sorts of challenges.
Fabulous long term growth opportunity in Australia with Glassons and a total dressable market more than 5 times that of N.Z.
On the other hand WHS has plenty of room for improvement and a much better yield and much lower metrics. WHS has been beaten down really hard and in my opinion is likely to outperform from here in 2022 compared to HLG. Long term, I am sure it will be the other way around.
SP doing quite well. I thought it would have been punished based on the outlook provided.