Consumer confidence turning upward ?
Noticed on Friday that our 10 year Govt stock rate is now 1.02%.
9% on top of that given HLG's superb track record seems like a good deal to me !
Honestly, if they can continue the growth in Australia they've enjoyed in the last 3 years, (the bigger they grow the greater the economies of scale kick in), then this is going to be a very rewarding stock to own going forward in more ways than just the 10.4% gross dividend yield.
Last edited by Beagle; 05-10-2019 at 10:42 AM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Consumer confidence turning upward ?
Noticed on Friday that our 10 year Govt stock rate is now 1.02%.
9% on top of that given HLG's superb track record seems like a good deal to me !
Honestly, if they can continue the growth in Australia they've enjoyed in the last 3 years, (the bigger they grow the greater the economies of scale kick in), then this is going to be a very rewarding stock to own going forward in more ways than just the 10.4% gross dividend yield.
In spite of what you've read in the papers and bank economic reports the clothing retail sector hasn't been too bad the last year or so. Chart on ABS data
Has had bad times in the past but not lately as the papers suggest
At the top of every bubble, everyone is convinced it's not yet a bubble.
Thanks Winner. Glassons Australia growth in the last 3 years has vastly outstripped the general growth in the apparel sector.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
F.Y.I.
Glassons Australia sales growth:-
2019 13.9%
2018 56.7%
2017 21.5%
I note their 2019 sales growth was during a period of very weak retail data in Australia.
More than enough evidence of an encouraging trend as far as I am concerned. The size of the Australian market is roughly five times N.Z.
Even better ....the opportunity is even more than you thought ....it appears as if AU market is 6.5 times NZ
At the top of every bubble, everyone is convinced it's not yet a bubble.
Even better ....the opportunity is even more than you thought ....it appears as if AU market is 6.5 times NZ
That's good. 5 times was a guess, suspected the opportunity was a bit more. Glassons Australia Sales
2016 $41.2m No new stores opened during the year
2017 $50.1m Net, no new stores opened during the year, (3 loss making stores closed, 3 new stores opened)
2018 $78.4m Added 2 new stores that year
2019 $89.5m Added 2 new stores during the year
Only added a net 4 new stores since 2016 yet sales have more than doubled (up 117%) in the last 3 years.
With the size of the Australian market and the way they have been growing the brand... I think the opportunity is very clear and they have clearly demonstrated the Glassons brand identity has rapidly growing awareness amongst Australian women.
They have really modernised many of their stores to the new format. I mentioned way back in 2016 this was something I was very impressed with after a couple of site visits. I think its clear I'm not the only one impressed with their new European style store formats.
Onward and upward and 6.5 times the opportunity in Australia as N.Z, that's pretty cool isn't it !.... and lets not forget we're being paid extremely handsomely (10.4% gross yield at $5.85) to enjoy waiting for more growth
Last edited by Beagle; 05-10-2019 at 07:04 PM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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