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29-04-2020, 10:04 PM
#4251
Member
Originally Posted by bull....
if gen y do go back in droves ( i doubt it as heaps them be losing jobs and apparel suffers during recession) those buying around $2 odd lol got bargain of the century
It is remotely possible that Gen Ys may not do so badly. When the rehiring starts in bits and pieces there might be a preference to take back the smart, hungry, tech savvy 30yo on $120k ahead of the irritable, tired 45yo on $200+k. Speculation of course but if so our clothing market (plus others) may have resilience.
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30-04-2020, 06:45 AM
#4252
Originally Posted by dibble
It is remotely possible that Gen Ys may not do so badly. When the rehiring starts in bits and pieces there might be a preference to take back the smart, hungry, tech savvy 30yo on $120k ahead of the irritable, tired 45yo on $200+k. Speculation of course but if so our clothing market (plus others) may have resilience.
hiring intentions lot of guess work for sure guess it depends on how the economy changes and adapts going forward to know what are the skills required in people needed for new business models.
one step ahead of the herd
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30-04-2020, 08:33 AM
#4253
Member
Originally Posted by bull....
apparel suffers during recession
I guess not all apparel is equal though. HLG is probably pitched towards the lower-to-mid end range of the market, so may benefit more than its industry peers who offer 'high end' fashion, that customers can no longer afford (i.e. luxury items), much the same way fast food chains tend to do okay in a recession. not saying there wouldn't be any impact on HLG, just that it might not be as bad as punters think.... the product mix and offering has to be right though. I remember months ago we talked about a pair of.... pink flamingo shorts(??)... yeah... nah....
disc. holding & happy
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30-04-2020, 08:40 AM
#4254
Originally Posted by Filthy
I guess not all apparel is equal though. HLG is probably pitched towards the lower-to-mid end range of the market, so may benefit more than its industry peers who offer 'high end' fashion, that customers can no longer afford (i.e. luxury items), much the same way fast food chains tend to do okay in a recession. not saying there wouldn't be any impact on HLG, just that it might not be as bad as punters think.... the product mix and offering has to be right though. I remember months ago we talked about a pair of.... pink flamingo shorts(??)... yeah... nah....
disc. holding & happy
current pricing of the stock suggests investors are hoping the decline in sales is not to bad
one step ahead of the herd
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30-04-2020, 08:53 AM
#4255
Member
Originally Posted by bull....
current pricing of the stock suggests investors are hoping the decline in sales is not to bad
yep. likely to tread water for a bit. if sales can get something close to (or thereabouts) vs previous few years, that would be okay in my view. it was never the growth company some made it out to be, just a normal cyclical, with a reliable divi - prudently deferred not cancelled.
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30-04-2020, 08:58 AM
#4256
Originally Posted by Filthy
it was never the growth company some made it out to be, just a normal cyclical, with a reliable divi - prudently deferred not cancelled.
spot on
im picking div should be postponed for the entire year to cover the lease obligations and as a precaution in uncertain times , also still think there is a possible case more debt or cap raising is needed if sales turn out worse than expected
one step ahead of the herd
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30-04-2020, 09:46 AM
#4257
I sold out a while ago at a lower price than they are trading at now. Timing was bad but I still think I did the right thing. I Just cannot see that HLG will come out of this disaster anytime soon. Shopping malls are closed and sure they will reopen in the near future but unemployment will persist driven by the collapse of the tourism industry and all the restaurants and bars and hotels that rely on tourism. Many businesses HLG included are going to have a very rough ride for a long time.
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30-04-2020, 09:57 AM
#4258
Originally Posted by Brain
I sold out a while ago at a lower price than they are trading at now. Timing was bad but I still think I did the right thing. I Just cannot see that HLG will come out of this disaster anytime soon. Shopping malls are closed and sure they will reopen in the near future but unemployment will persist driven by the collapse of the tourism industry and all the restaurants and bars and hotels that rely on tourism. Many businesses HLG included are going to have a very rough ride for a long time.
HLG is one retailer which has not only survived but thrived with the test of time and numerous crises.
This one will be no different for a company with very conservative balance sheet (zero debts & $12.8m in cash as at 30 March 2020) and top class management.
If any clothing retailer is going to survive the recession, HLG not only will but its product range can be re-designed and price points adjusted to meet the market.
Dis. Not a holder but big supporter of NZ companies (Briscoe is another) which are well run and conservatively financed with no debts.
Last edited by Balance; 30-04-2020 at 11:23 AM.
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30-04-2020, 01:29 PM
#4259
Originally Posted by Balance
HLG is one retailer which has not only survived but thrived with the test of time and numerous crises.
This one will be no different for a company with very conservative balance sheet (zero debts & $12.8m in cash as at 30 March 2020) and top class management.
If any clothing retailer is going to survive the recession, HLG not only will but its product range can be re-designed and price points adjusted to meet the market.
Dis. Not a holder but big supporter of NZ companies (Briscoe is another) which are well run and conservatively financed with no debts.
I agree balance this is a very well managed company but this crisis is one out of the bag. In February I thought the virus was just another flu. Some medical guys thought the same. I am trying to invest in companies with a tail wind and in these times an occasional puff will do. My view is that HLG is going to have to work very hard and be exceptionally smart to get through this. The cards are not stacked in its favour.
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30-04-2020, 01:56 PM
#4260
Originally Posted by Brain
…. My view is that HLG is going to have to work very hard and be exceptionally smart to get through this. The cards are not stacked in its favour.
No matter what happens, people still need clothes. Right now I am in need of something as simple as a couple of pair of socks. I agree that many clothing stores will struggle, yet I see HLG as being able to make the most of it and come out ahead of their competition.
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