HLG - Hallenstein Glasson

[winner69]

Shareclarity unimpressed highlighting the 180bp contraction in GP margin

It was noticeable but didnt seem that bad to me when I read the announcement
It seemed within coo-eee as you might say , of normal variation, especially in this sector.

They also say
NPBT excl Storm declined 2.7%.

Glassons Australia dragged the profit down ... NZ just held its own

[couta1]

Shareclarity unimpressed highlighting the 180bp contraction in GP margin

It was noticeable but didnt seem that bad to me when I read the announcement
It seemed within coo-eee as you might say , of normal variation, especially in this sector.

They also say
NPBT excl Storm declined 2.7%.

Shareclarity I trust as much as a bull in a China shop.Lol

[winner69]

Glassons Australia

GM% down 3% points ....ouch

And while sales up 16% expenses were up 19% ....ouch

NPBT down 10% as a result

It'll get sorted ...no worries

[peat]

Shareclarity I trust as much as a bull in a China shop.Lol

its not trust to listen to their point though
presumably they've got the maths right.

[couta1]

This share is cheap for a 40c fully imputed divvy and a realistic PE, compare it with the likes of CNU where people are prepared to pay near $6 for less than 4% dividend yield, they must be sniffing glue or taking some other substance.

[Snow Leopard]

One should remember almost ALL clothing made in China at very similar costings but its up to retail to add margins of 100% 200% 300% take your pick ?

Almost ALL?

Whilst China is probably still the largest provider it has about 20% of the 'market' and declining

You are forgetting Bangladesh, India, Vietnam, Indonesia, The Philippines, Sri Lanka....

[Beagle]

It should be noted that in the pcp the currency was much stronger. I think this is a very solid and very credible result in a tougher retail environment with much lower currency and much lower consumer confidence than the previous corresponding period and they should go very close to making 50 cps this year which puts them on a forward PE of just 9 on a theoretical ex divvy price of $4.50. Compares to Briscoes of 11.3. I think Maverick is about right with his fair value assessment of $5.30 but I think there's a sound case for $5.50. MASSIVE POTENTIAL in Australia for Glassons.

[pg0220]

Glassons Australia

GM% down 3% points ....ouch

And while sales up 16% expenses were up 19% ....ouch

NPBT down 10% as a result

It'll get sorted ...no worries

Need to look at the sales growth. GM is lower, contributing comparatively lower GP and NPAT. As many of you indicated since a few months ago, they are going through a downturn in cycle, yet still building a momentum with sales growth in Australia. Once they get out of the downturn, guess what will happen when they recover the margin ratio back to what it was last year?!

[Snow Leopard]

Only just read the financial summary and was expecting a drop in NPAT after reading the comments here, but it is up and dividend maintained.

Must be missing the obvious as I am happy with the result.

[Beagle]

You're not missing anything, its the others that don't understand the credibility of this result as this period had much lower consumer confidence and much tougher currency than the previous corresponding period. I really like the drop in overhead costs against a rising income line which leaves heaps of room for profit growth once fairer weather returns. Announcement made it clear they are looking at multiple expansion opportunities in Australia and digital sales are growing nicely.

Forward PE of just 9 looks very cheap against this backdrop.