HLG - Hallenstein Glasson

[percy]

I may be wrong but I think percy's issue with leases is around the contingent liability that they pose, eg will they be enforced - rentals charged - on premises closed during lockdown; will rental reductions be allowed; can lease liabilities be excused or avoided? I have the same issues.

Yes correct.At this time we do not know what sort of arrangements tenants will make with landlords.not just for lockdowns but ongoing .
I read some landlords are working with tenants,some are not.In one ChCh mall it depends on your lease.Some leases have a clause that will help tenants through Covid 19, while other leases do not .Those without that clause are expected to "honour" their lease.[ie pay up]
Some malls may never see pre Covid 19 foot traffic,so ongoing rent relief will be reguired.However, that may be easier said than done.So leases are an ongoing area of concern.
Examples.WHS need to close a number of stores.I expect on the leases that come up for renewal over the next few years ,WHS will be play hard ball with their landlords.
Smiths City Colombo Street's landlord will not look at their rent.Therefore they are moving to Sydenham.
Lovisa which I have followed, failed to come to an arrangement with their Spanish landlords and are closing all their stores in Spain.
Australian newspapers are full of bun fights between tenants and landlords.
30% of HLG's last 6 months of sales were online .This means they can be very selective about where they open new stores,the rental they are prepared to pay and other terms of their leases.Some existing leases may be unsatisfactory.
At this time we are guessing all will be rosy.Investing on guesses is not wise.

[winner69]

Hope HLG got some rent relief from the landlord of their flagship CBD Christchurch store

[percy]

Hope HLG got some rent relief from the landlord of their flagship CBD Christchurch store

"No comment."...................lol

ps.Stories abound about ChCh CBD retailers struggling.

[Beagle]

30% of HLG's last 6 months of sales were online .This means they can be very selective about where they open new stores,the rental they are prepared to pay and other terms of their leases.Some existing leases may be unsatisfactory.

Growth in ecommerce sales was spectacular and is a massive advantage going forward. I haven't factored that into my upgraded valuation yet...probably need to upgrade again sometime in 2021.

[King1212]

That what my initial thoughts..all retailers will consolidate thier business to popular n big malls...close the one that in the town or central...n focus on shops that people tend to visit such as malls...

[percy]

Growth in ecommerce sales was spectacular and is a massive advantage going forward. I haven't factored that into my upgraded valuation yet...probably need to upgrade again sometime in 2021.

The online % of total revenue may decrease as more shops [thinking of Victoria here] re open.Yet I see the value in dollars only in creasing in the future.Covid 19 brought forward online e commerce by between two and five years.
Now I may be wrong, but I take it all those online sales are being serviced out of two centres,one in NZ, and the other in Aussie.[Incredible just two]
From what I learnt from CEO Mary Devine at last year's agm, the big online growth was coming from Glassons in Australia.Now that is the market that counts.[as Aussie landlords have a reputation of being vicious]
I see HLG revenue and margin growth coming from mainly online Aussie sales,which would be very positive..

[Waltzing]

Are investors finally coming to this stock late in the day after reading comments from some of the best retail investors on the NZX. B, C AND P and others.

[percy]

Are investors finally coming to this stock late in the day after reading comments from some of the best retail investors on the NZX. B, C AND P and others.

Just take care.Some or perhaps a lot of issues remain.A few unanswered questions.
Some landlords may not be fair.
Some stores may suffer from less foot traffic,and have to close when their lease expires.[could be 2 to 3 years time].
Rising NZ $ main affect margins.
Ten days sick leave mean instead of three weeks holiday, five weeks off.[can't close the store because percy is on holiday,will have to pay Beagle to come in]

[Beagle]

Just take care.Some or perhaps a lot of issues remain.A few unanswered questions.
Some landlords may not be fair.
Some stores may suffer from less foot traffic,and have to close when their lease expires.[could be 2 to 3 years time].
Rising NZ $ main affect margins.
Ten days sick leave mean instead of three weeks holiday, five weeks off.[can't close the store because percy is on holiday,will have to pay Beagle to come in]

Now there's a thought...the Beagle helping attractive young women choose sexy new outfits and swimwear for summer...Hmmm, sounds like a really "tough" gig...crickey I'll work for free if you pay for the double dose of my heart pills
Rising dollar will help importers margins quite a LOT compared to last year ! HLG seem adept at extricating themselves from unprofitable stores...that owners eye of Tim Glasson with 20%, always busy looking after himself and shareholders !

[percy]

Now there's a thought...the Beagle helping attractive young women choose sexy new outfits and swimwear for summer...crickey I'll work for free if you pay for the double dose of my heart pills
Rising dollar will help importers margins quite a LOT compared to last year ! HLG seem adept at extricating themselves from unprofitable stores...that owners eye of Tim Glasson with 20%, always busy looking after himself and shareholders !

Whoops.....Should have said should NZ $ fall..
Tim Glasson.Funny watching him at the end of the top table at their agm.Forget the chairman,Tim controlled the meeting.!!!