Company was at pains to highlight the material currency difference of both the Kiwi and the Aussie dollars against the US dollar in its NZX releases in December 2019.
Never before have they highlighted how both currencies were materially weaker. In the context of that and the worst drought and bushfires ever in Australia I think its a highly credible result and it highlights just how cautious this companies statements are, when in reality they always seem to manage the challenges very well.
Autumn stock will probably already being in their warehouses so stock procurement not an issue for the coming season and easy enough for their buyers to redirect their buying activities to Bangladesh for the forthcoming Winter season buying program. Very few concerns about supply chain issues, as I think they can adapt quite easily so we can all go back to sleep.
Yawn
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
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
but dreamcatcher said - When I was in the game winter indent dates were Feb/April or you miss the bus. If China indents not arrived be a serious problem.
Maybe not arrived yet
Last edited by winner69; 21-02-2020 at 02:32 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
I'm a fan of the mgmt of HLG but this is a situation where there exceptionally good 'just in time' stock management is going to come back to bite. Hearing more info from commercial connections about how bad China really is and what the flow on effect is going to be. Basically the dock/factory workers just arent going to be there for some time yet (they are predominantly from the regions) and retailers either have stock stuck on wharves or either are going to be in a serious backlog.
At a top level 'how bad is it going to be', the 2nd largest economy in the world is broadly going to stop working for ~3 months...
Also, they cant just shift supply to Bangladesh.... 1) EVERYONE will be trying to do that and 2) BNG textile industry doesnt have the technical expertise and variety in capability in certain areas that China does. Plus logistics out of BNG can be a pretty big hassle (port facilities are already pretty stretched).
Originally Posted by couta1
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