HLG - Hallenstein Glasson

[Hectorplains]

Another great story.Margaret Quinn had an eye for fashion and decided to open a fashion store in Merivale.Was very difficult for a new store to attract a designer label to sell.She opened with 5 labels.She and her builder husband owned their own store on Papanui Road that backed onto what would become Merivale Mall.Then when the Mall was developed their store fitted into the Mall.I think they sold their property to the mall and rented space in the mall.I think she tried without success to sell the business before she diedThe store closed.

For legal reasons I can not talk about Merivale Paper Plus closing,while Whitcoulls will open in Merivale Mall.
I do know book lovers will be very unhappy.

I'll respect the dead and stay quiet on my experiences with the Quinns...

Anyhow - https://www.nzx.com/companies/HLG/announcements/308347

"Experience with the brand" on "the journey" - seems it now takes two to do the work of the wonder Di.

More promo from within...

[Beagle]

I think its clear with the stunning 21% increase in Glassons Australia sales over the last year and given the Aussie market is at least five times the size of ours, the company is placing extra management resource into growing Australian sales and looking to mow some of the Australian apparel retailers grass for them. Who better than the best representative from the Glassons family who have a substantial stake in the company to drive this momentum forward ! Everyone thinks of this stock as nothing but a dividend hounds hold but recent sales momentum suggests there is some growth potential that I suspect the market has yet to fully appreciate. A real value buy on a near 14% gross yield trading cum its fully imputed 17 cent final divvy with hidden growth potential for those in the know
Contrary to the raging populist theory that Amazon will be the be and end all of all things retail to all people I truly believe that the vast majority of people still want to try clothes on for fit, style, fabric and feel before committing to a retail purchase.

[Hectorplains]

I think its clear with the stunning 21% increase in Glassons Australia sales over the last year and given the Aussie market is at least five times the size of ours, the company is placing extra management resource into growing Australian sales and looking to mow some of the Australian apparel retailers grass for them.

Nice ramp but the reality is while the market may be 5xNZ, sales of Glassons Australia are half that of Glassons NZ. Glassons Australia had been trading at a loss - no mention was made of what their 'return to profit' means in real figures in the Interim.

From HLG report 2016, "Difficulties in securing effective management for Glassons havecaused a lack of product continuity and fashionability which hasimpacted both sales and margin. That key issue was addressedwith the appointment of Di Humphries in April 2016." The "best representative of the Glassons' family" was not good enough then...

[Beagle]

Nice ramp but the reality is while the market may be 5xNZ, sales of Glassons Australia are half that of Glassons NZ. Glassons Australia had been trading at a loss - no mention was made of what their 'return to profit' means in real figures in the Interim.

From HLG report 2016, "Difficulties in securing effective management for Glassons havecaused a lack of product continuity and fashionability which hasimpacted both sales and margin. That key issue was addressedwith the appointment of Di Humphries in April 2016." The "best representative of the Glassons' family" was not good enough then...

Obviously they see more potential with the new format stores with the benefit of 18 months more market evidence...after all, as I am sure most would agree, all retail involves a degree of trail and error. As usual with all companies time will tell but unlike in the vast majority of other cases, in this case HLG shareholders are being paid extremely handsomely so even if there's no real profitability gains in Australia the fallback position of being a superb dividend hounds stock has its own unique attributes. Almost unmatched gross dividend yield compared to any other NZX stock ?

[minimoke]

Contrary to the raging populist theory that Amazon will be the be and end all of all things retail to all people I truly believe that the vast majority of people still want to try clothes on for fit, style, fabric and feel before committing to a retail purchase.

I've been clearing the neighbours letter box for the last month or so. I am surprised how many catalogies come through the mail selling clothing - from bras and shoes and coats to everything you would want to wear. All sorts of catalogues. All by mail order. Perhaps its like me - I know my shoe size and just go straight to Amazon and buy shoes with the same size.

The issue isnt about the clothing - its about the shopping experience. If the retailer can make it a repeatable positive experience then there is life in brick and mortar shops.

(disc - I'm probably in the minority and find shopping for clothes a total bore so dont do it until I really have to. And when i do its not about the experience unless I can get in and out as quick as possible)

[Beagle]

Shoes are the one and only item of clothing I buy online. I know exactly what I want and my size. I don't like shopping for clothes either, in fact I detest it but its safer to buy them in person to make sure they fit properly, look good and the fabric feels good and appears to be well made and should be reasonably durable.

[Hectorplains]

Shoes are the one and only item of clothing I buy online. I know exactly what I want and my size. I don't like shopping for clothes either, in fact I detest it but its safer to buy them in person to make sure they fit properly, look good and the fabric feels good and appears to be well made and should be reasonably durable.

NZ online spending increased 16% last year (on the back of 14% the year before.) Clothing is on the of the categories leading that charge. Times are good for HLG right now but change is happening quickly. HLG's online ability is not one I'd be banking on for future growth.

[winner69]

A lot of faith in Australia helping HLG grow in F18

Things not looking too good for retailers in OZ
http://www.news.com.au/finance/econo...55da9c5883a336

Looking at the actual numbers Clothing retail sector sort of hanging in there at the moment - not booming

[minimoke]

Being a bit nosey another of these catalogues has turned up in the mail - how many are there!! A blouse and necklace set for $59.99 or 2 payments of $29.99. So online is offering a bit of a finance type deal as well. No idea of the quality though

[percy]

NZ online spending increased 16% last year (on the back of 14% the year before.) Clothing is on the of the categories leading that charge. Times are good for HLG right now but change is happening quickly. HLG's online ability is not one I'd be banking on for future growth.

HLG online sales increased 44%.Gaining momentum.