HLG - Hallenstein Glasson

[Beagle]

4.8% up and they don't have the loss making storm brand this year so that has to be taken into account.

[percy]

HaHa I love the latest announcement, up 4.8% on the same period as last year yet trading conditions remain tough on both sides of the ditch.

They are doing very well in a very tough retail market.
Not easy out there.
Wise not making any projections,for Christmas and January..

[Beagle]

They are doing very well in a very tough retail market.
Not easy out there.
Wise not making any projections,for Christmas and January..

Petrol prices affect discretionary retail spend and have come down materially on both sides of the Tasman in the last couple of weeks.

[Maverick]

4.8% up and they don't have the loss making storm brand this year so that has to be taken into account.

Thats 4.8 % on top of last years increase for the same period of 15%. What a terrific update but a little caution is warranted though.
Last year they added they had improved margins and the profit would easily exceed the prior years profit. They were unusually bullish which was surprising as they aren't a very talkative bunch.

This year they haven't said either of those. In fact they said trading conditions have been "tough both sides of the Tasman." Plus I think they have a few more stores now to generate the extra sales.
So , yes a fantastic starting point , and without the handbrake of "storm" as pointed out by Beagle, but they have added caution rather than last years enthusiasm.

I`m a big fan of HLG but I`m a little nervous at these share price levels, which given todays update, in my humble opinion, seems about right for now until we hear more about the margins achieved.

[percy]

Petrol prices affect discretionary retail spend and have come down materially on both sides of the Tasman in the last couple of weeks.

Agreed....However it is often your competitors getting things wrong, and their discounting that can affect you the most.

[bull....]

Yep looking exceptionally good in the short and maybe medium term ......

......but one day profits will fall and share price will be sub $3 again ..that’s the nature of cyclical businesses

so true i see hallenstein says the going getting tough

Going gets tough for Hallenstein Glasson

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12170480

[winner69]

So 4.9% sales growth disappoints the ‘market’

[Beagle]

So 4.9% sales growth disappoints the ‘market’

Coming on the back of very good growth in the previous two years and the exit from the loss making storm brand (reducing sales this period compared to last) I think that's more than satisfactory but I agree with Maverick's post above and my sense is in the mid $5's, it's about fair value. I know I was hoping for a little more sales growth but the reality is that high fuel prices prevailing in October and much of November have sucked a bit of wind out of the retail sector. My sense is now that those prices have reverted to more normal level's we should see some confidence coming back into consumer spending over the Christmas holiday season. Good hold for yield. Trades cum a 24 cent fully imputed dividend, (as we all know).

[couta1]

So 4.9% sales growth disappoints the ‘market’

I think you mean disappoints the twitchy reef fish winner, haven't seen the true market speaking on this stock since that Aussie crowd were buying up big otherwise it's just low volume/low liquidity noise, will be good sales over the next 2 months so no worries.PS-Would be very happy to see this or OCA included in the NZX50 in the not too distant future.

[winner69]

Coming on the back of very good growth in the previous two years and the exit from the loss making storm brand (reducing sales this period compared to last) I think that's more than satisfactory......

Yes, last year’s announcement was sales up 15% so this year’s 5% is coming on the back of that good growth. Don’t understand what you getting at innssying that but whatever sales growth is slowing / moderating,

Last year’s 15% was when share price was about 340 and the excitment of that news took the share price up 25%. Doubt whether +5% will do much to the share price at this level.

Wonder what same store sales growth was ...hmmm