BGR - Briscoes Valuation

[jg8512]

and a stunningly quick update. it's for the period to 28 Jan 2018. BGP clearly have some very good systems and finance staff

[Beagle]

Another year of profitable growth is locked in. At a pe of 12 seems pretty good value to me and i hold alongside hlg as my retail stocks

Current year PE of 12.68 at $3.50. Seems good value considering their stellar growth track record and no arguing Rod Duke's retail experience but a lot of what they sell can be brought online without the need to try it on which is much more a requirement with HLG's clothes. FWIW I think HLG has the better more defensible market position.

[JoeGrogan]

61m NPAT full year with biggest boxing day sales ever. Good solid result

Very solid indeed, market seems to agree too.

[winner69]

Yeah with a decent yield too and trading more than a dollar below last years highs, can’t complain with the value here.

Amazing that a company that can perform so consistently well as Briscoes can see its share price fall by 30% in a relatively short time

Hope you were buying big time when it fell back to 320/330

Will be back to 450 before we know it

[Filthy]

but a lot of what they sell can be brought online without the need to try it on which is much more a requirement with HLG's clothes. FWIW I think HLG has the better more defensible market position.

hmm not convinced about this roger. https://www.pwc.com/gx/en/industries...etail-2017.pdf (page 34) ranks clothing as the third(?) highest category for online shopping. plenty of fashion websites i.e. asos, boohoo etc offer sale returns if the products don't fit. HLG have done fantastic this year (don't get me wrong) but it is probably more to do with their current product mix, designs, latest brands etc more than anything else. I wouldn't say they have anymore of a defensible position than briscoes in that both retailers will have fight hard to keep market share in growing competitive environments. impressed both BGR and HLG have strongly grown online sales though, which does help against increased online competition.

anyway - back to the 1/4 result..... seems good for BGP - low single digit growth and plenty to look forward too. perhaps things will be 'okay' for retailers after all? .......at some stage there has to be a consumer revolt against amazon eh!

disc. hold a small BGP parcel (after it was oversold imo), but sadly missed out on the HLG run (having sold out when H&M/Topshop entered NZ ....albeit that risk seems to have disappeared for now! - so well done to holders)




filthy

[JoeGrogan]

Amazing that a company that can perform so consistently well as Briscoes can see its share price fall by 30% in a relatively short time

Hope you were buying big time when it fell back to 320/330

Will be back to 450 before we know it

Yeah punters must be scared of the lower liquidity.

Haha was able to grab a few parcels in the 330's the past few months should have gotten more - retails not usually my gig though.

[Beagle]

Sorry I haven't got a link for you but one study I've seen shows despite Amazon having acquired two major clothing retail chains they only have 6% of the apparel market in the U.S. Have a think about this from a practical point of view. A lot of what Briscoe's sells kitchenware, bathroomware can easily be cross shopped across multiple online channels. Clothes on the other hand, I maintain most people like to try them on for fit, fashion, fabric and generally if they look and feel good on your body. Each to their own mate but I for one see no need to diversify my retail portfolio allocation and note HLG's considerably superior dividend yield.

[JeremyALD]

Current year PE of 12.68 at $3.50. Seems good value considering their stellar growth track record and no arguing Rod Duke's retail experience but a lot of what they sell can be brought online without the need to try it on which is much more a requirement with HLG's clothes. FWIW I think HLG has the better more defensible market position.

I hold twice as many HLG shares as BGR shares beagle but I don't really agree. BGR has a far better track record than HLG in consistently growing profits and has had significant competition in many of the years they have delivered growth. I wouldn't buy appliances and pots online, but would buy clothes online. Big difference is younger people shop at HLG and older people at BGR imo.

In saying this HLG has more room for growth and pays a very good yield. I think both are very good value and imo Amazon is very overplayed in both markets.

The thing that worries me about BGR is the terrible liquidity.

[dragonz]

I'm not worried about liquidity. I completely agree with your comments accepting that HLG is going to come up against increased competition from offshore retailers. Personally I think its done its dash

Disc. Sold HGL to reinvest into BGP

[macduffy]

[QUOTEBig difference is younger people shop at HLG and older people at BGR imo. ][/QUOTE]

Really? Have you ever been in a Briscoes store a couple of weeks before uni/tertiary classes start a term? All those student flats to equip, only the more expensive pots, pans, sheets, towels etc left for the latecomers!