HLG - Hallenstein Glasson

[Beagle]

I like boats and that pic on p10 does a great job of showcasing the fashion.

They need to include a couple of cute terriers in there somewhere eh mate, you could offer your one as a show dog for their next annual report photo shoot

[Beagle]

Online 15% of revenue is excellent.
Wonder where it will be in 3 to 5 years time.?

Very well said Percy. That's a great question to mull over !!
Skim read the annual report and it was indeed a breath of fresh air.
Just the good and necessary stuff without being mindlessly obsessive about inclusiveness and diversity and / or overtly playing favourites with one particular minority ethnicity. A very good read and obviously a very well managed and governed business run by people with their heads well and truly screwed on properly.
Glassons Australia growth is especially encouraging.
Really liked this bit, Our mandate "Sustainable long term growth"
A company with a bright future trading on very undemanding metrics and cum a 24 cent fully imputed final dividend.

[peat]

all good and everything but wow have you seen the trails of disaster in this sector in Aussie. As always it can be interpreted either way as it may affect HLG , but certainly a dash of reality

[Beagle]

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 Glassons Australia sales have more than doubled (up 117%) in the last 3 years. Beagle

From a few pages ago peat.
Numbers speak for themselves and it pays to focus on what works and ignore the failures from other apparel retailers who don't know how to build a brand. The annual report indicates to me there is a very good degree of confidence about their ability to grow Glassons Australia going forward.

[winner69]

......

I see their earnings CAGR (10 years) is 4.5%. A solid number, but at a PE of 12.2 and in a cyclical sector they appear to be fairly priced.

;

So HLG 10 year earnings growth in line with the NZX50 earnings growth ....but the NZX50 currently trading at a PE 0f 33 odd

[Snow Leopard]

Finally through that $6 resistance.

Somebody will come out with 'resistance once broken often becomes support'.

To infinity and beyond

[peat]

Finally through that $6 resistance.

Somebody will come out with 'resistance once broken often becomes support'.

Or, somebody could come out with VWAP 598.65 !

ATH soon?


Beagle

Its a real testament to their nous, there is so much competition and yet they continue to deliver.

I agree focus on what works.
hold HLG

[Beagle]

So HLG 10 year earnings growth in line with the NZX50 earnings growth ....but the NZX50 currently trading at a PE 0f 33 odd

Hmmmm...makes you think eh. Still being priced like a no growth cyclical company...but what if Glassons growth in Australia is no fluke and they keep growing, (current sales are still a bit less than N.Z.) and the Australian market is 6 times the size. Oh my goodness, wouldn't that be something ! Think our mate Couta1 is very well positioned. Keep an eye out, a little birdie tells me he might be in the top 20 holders list next year.

[BlackPeter]

So HLG 10 year earnings growth in line with the NZX50 earnings growth ....but the NZX50 currently trading at a PE 0f 33 odd

Sure - though NZX50 contain as well a number of "growth" companies with growth (often well) beyond 10 %. I am talking about companies like RYM, SUM, ATM, MFT, FPH - to name just a few. They certainly would deserve a higher PE, wouldn't they?

The other thing is - many NZX 50 companies (like AIA, Gentailers, port companies) are traded as "quasi-bonds" - they naturally will have a higher PE. Do you see HLG in the same class? If yes, then $15 can't be far away (which would be a PE of 30).

Who knows ... markets are going mysterious ways ...

[kiwidollabill]

Apparel market (globally) has certainly changed.....

Lots of higher end e-com brands in the US taking share away from incumbents (i.e. JC Penny), they've made themselves far more relevant to the changing consumer rather than just being a 'household name'.

If HLG have build strategic capability within their people to remain agile when others are stagnant then they will continue to do well at the expense at others who remain more exposed to volatility in the market place.