HLG - Hallenstein Glasson

[Beagle]

One would be forgiven to think HLG has had its run but the numbers in todays report, although not new, are stunning. Apart from the obvious headline of the huge profit increase, sales AND margins there are a few goodies in there too.

Storm lost 1.45 million before this massive profit so that makes the theoretical profit of 16.55 million NPAT.

The direction of HLG is very pleasing. Ridding themselves of Storm and large increase of capital spending in AU. AU glassons is still smaller than NZ Glasson but I suspect this year it will exceed NZ. Their margins over there are better too which is surprising.

So with the huge blue sky potential with the AU expansion, the shedding of storm, ever increasing online sales (which must be very high margin given the low extra overhead costs associated with it), proven store formatting and availability of them I`m thinking these profit levels are VERY sustainable.

While they keep to the script and continue with their well selected offerings then $6-$6.5 sp here we come, plus a divi or too along the way.

Agree 100%. When I was buying a couple of years ago in the late $2 range there were heaps of people telling me this stock was dying. Its turned out to be anything but what many naysayers suggested. I think its pretty clear they've found a new gear and now looking to shift into overdrive ! I bought for their superb dividend yield and to be honest about it never really expected anything else. Like you I think Glassons Australia has huge potential so I'm more than happy to keep holding for the great dividends and if they get to $6 or $7 over the next year or two I'm all good with that too 40 cents fully imputed this calendar year is my expectation (40 / 0.72) / $4.60 = 12.1% gross yield and this still gives them heaps of free cash flow to invest in significant further Australian store expansion.
Whoever said you can't have you cake in terms of dividend yield and enjoy strong growth as well !
http://nzx-prod-s7fsd7f98s.s3-websit...336/278419.pdf
Beautiful looking report..oh and the numbers looked really beautiful as well
As Maverick quite correctly picked up, Strom Loss of ~ $1.5, now non recurring means on a normalized basis going forward we can say profit from remaining operations was just on $16.5m which is absolutely stunning any way you slice and dice this !
Cash flow from operations was a whopping 30 cps. Cash on hand as at report rate had climbed by ~ $6m to ~ $18m and that's after paying last December's whopping dividend during the period.
All signs point north, and patient investors will be well rewarded.

[winner69]

OMG even Espirit can’t keep up with Hallensteins and Glassons

Another competitor one bites the dust ...and a global one at that

At this HLG will be the behemoth of the fashion world in ANZ with a few other hangers on trying to stay in business.

https://www.stuff.co.nz/business/ind...tralian-stores

[winner69]

Probably weren’t much competition anyway

[Beagle]

The weak die and the strong and successful innovate and thrive. Quite a number of clothing retailers have bitten the dust in the last year but HLG going from strength to strength. The new CEO must be far more cunning than Di Humpheries eh mate

[BlackPeter]

I didn't noticed they have been in New Zealand ;

[percy]

The weak die and the strong and successful innovate and thrive. Quite a number of clothing retailers have bitten the dust in the last year but HLG going from strength to strength. The new CEO must be far more cunning than Di Humpheries eh mate

Di is a bit like Sunny Bill.May not score a lot of tries, but sets up others to score.Makes the breaks, and commits two or more defenders to tackle him,so leaving a clear run for his wingers.

[winner69]

Good article in SMH

Just as well Hallensteins and Glassons don't treat their customers as fools. They know and understand them and give them the experience / stuff they want

Hey, global fashion brands, stop treating Australian shoppers like fools
https://www.smh.com.au/lifestyle/fas...03-p4zd88.html

[see weed]

Sold a few HLG last week, but will be buying back in later in the year for the great dividend. Topping up with a few more ATM before results come out.

[thestg]

Sold a few HLG last week, but will be buying back in later in the year for the great dividend. Topping up with a few more ATM before results come out.

That sounds a really good idea. I was overweight in HLG so just done the same.
Portfolio now overweight in ATM at 35% compared to 27.11% in HLG.

[LAC]

I probably bought some of you guys HLG's