HLG - Hallenstein Glasson

[Raz]

Postie Plus lives.
New owners.
New lower everyday prices.
The menswear retailer that surprises me is The Farmers.I think they are gaining market share.

Yes farmers are doing well, acquired some high quality buyers..never under estimate the difference they can make.

[Ghost Monkey]

Ok, so assuming that this has been oversold a bit and that Roger's assumptions are on the money (refer post #561), one could safely assume that there is definitely some upside to this stock if we assume that the headwinds of this year have retreated!
However, and I may be assuming too much here so please forgive me if I am, we may also assume that they face more competition and lack of 'brand desirability' in which case we can therefore assume that margins may stay under pressure, with the resulting assumpti.........wait a minute.........where'd my tail go? ..........
tail? ....... that's strange, I swear it was here just a minute ago ............tail?.............. ................. ................... .....
........
........
(exit screen, wanders off to look for tail)

[Beagle]

Last time I got on this horse about a year ago people were saying that competition was going to take its toll e.t.c. e.t.c. and yet they grew top line sales and profit has held up reasonably well with the lower dollar at 65 cents.

I think with Di Humpheries leadership and fashion expertise back at Glasson's (Hallensteins grew sales 6%, (see FY16 interim report) there's definitely a lot of potential there and the company itsdelf said the Glassons side of things is getting back on track and confirmed the key summer stock purchases are to be made at a much more favourable exchange rate.

Even if all that potential isn't fully realised and shareholders simply enjoy the (30 / 0.72) / 271 = 15.4% gross dividend yield and the SP does nothing this hound will still be wagging his tail in delight with the size of those XXXXL dividend feeds.

[boysy]

Think holders are not understanding the completion heading HGL way much like AIR there's a reason why the divi yield
Is creeping up its all to do with completion we are entering a new age where competitors are offering cheaper products of better quality than HGL can offer. Can shareholders honestly say they would rather shop at HGL tha competitors such as top shop etc ?

[Beagle]

Or maybe the bean counting dog has seen 1001 sets of financials and understands the effects a key change in the input costs has on the bottom line, something we will see with the completion of their FY17 financial's and knows the company has a well established brand with a widespread distribution network...not one or two shops in the odd location here and there. Disc Hold AIR too, many think competition will kill that company's profitability too, (YAWN). (long week for the hound, tired of hunting,......must be time to sit by the food bowl and wait for a divvy feed shortly, AIR will be the first huge feed I think)

[winner69]

Or maybe the bean counting dog has seen 1001 sets of financials and understands the effects a key change in the input costs has on the bottom line, something we will see with the completion of their FY17 financial's and knows the company has a well established brand with a widespread distribution network...not one or two shops in the odd location here and there. Disc Hold AIR too, many think competition will kill that company's profitability too, (YAWN). (long week for the hound, tired of hunting,......must be time to sit by the food bowl and wait for a divvy feed shortly, AIR will be the first huge feed I think)

Only 1001 sets of accounts - lazy bugger

Accountants understand margins and what input costs can do for them - good or bad

But more importantly margin management comes instinctively to real retailers and the older they get the more canny they get. Rod Duke as the high profile one but HLG have Graeme Popplewell as CEO and Tim Glasson as a Director

Both of these guys (like Rod Duke) instinctively know how to make a buck and I would say far better at it than any accountant. Making a buck just a term for margin management - simple really, buy stuff that punters want at a good price and sell it at a good price(s) and don't get left with too much on the shelf at the end of the day.. HLG have done this very well over many decades - one of the highest margin retailers in NZ and never any real cash problems from having too much stock. They have doing this without any debt as well

Guys like Rod, Graeme and Tim also know things don't stand still - the world changes, fads come and go, competitors come and go. Some of their new stores are pretty classy and I believe the new Christchurch store is going to be the best yet. That will stop Top Shop contemplating going to Christchurch

Hallensteins been going since 1873 and Glassons since early 1900's - I reckon they still be going many more decades with good margins and generating plenty of cash

[boysy]

Roger who is buying HGL clothes the millennials are going on line for cheaper and more stylish options than HGL, looking at financials will not change the fact the retail landscape is changing. HGL has lived with competition for years this is now changing with overseas brands now getting a physical presence n NZ - Margins are going to be squeezed longer term

[Beagle]

Roger who is buying HGL clothes the millennials are going on line for cheaper and more stylish options than HGL, looking at financials will not change the fact the retail landscape is changing. HGL has lived with competition for years this is now changing with overseas brands now getting a physical presence n NZ - Margins are going to be squeezed longer term

People were talking the same thing a year ago and the year before that and yet their top line sales have grown in a soft economy. Margins will expand considerably with the higher Kiwi you mark my words and HLG directors said as much too. These guys didn't come down in the last shower mate. Vast numbers of people still want to try clothes on and see how they feel and look before buying and want to buy from a handy local shop from a trusted brand they know. Agree 100% with what Winner said above...good operators make their own luck.

People were expressing the same concerns regarding Briscoes a year or two back and Rod Duke just keeps on keeping on just like HLG will. They're good operators, keep stock turn high, have a really nice clean balance sheet with no B.S. intangible assets like 101 other companies do and operate in a good middle price point in their segment.

Agree Winner...I need to lift my game....should have that up to 1005 sets of accounts by month end

[Snow Leopard]

Roger who is buying HGL clothes the millennials are going on line for cheaper and more stylish options than HGL, looking at financials will not change the fact the retail landscape is changing. HGL has lived with competition for years this is now changing with overseas brands now getting a physical presence n NZ - Margins are going to be squeezed longer term

I feel this is, too a large degree, my fault.
It was after all me who criticised you for providing real-time trade by trade updates of the TIL share price. By the way, have you noticed a new all time closing high for them today?

So whilst it is good to see you out and about, so to speak, and taking on the Glutinous Ramp Hound or whatever he is calling himself now, in such excellent debate, I think it would help your cause a little if you could get the code for the company correct. It is HLG.

Best Wishes
Paper Tiger

Millennials outraged over TV show portraying millennials as outraged

[Beagle]

I feel this is, too a large degree, my fault.
It was after all me who criticised you for providing real-time trade by trade updates of the TIL share price. By the way, have you noticed a new all time closing high for them today?

So whilst it is good to see you out and about, so to speak, and taking on the Glutinous Ramp Hound or whatever he is calling himself now, in such excellent debate, I think it would help your cause a little if you could get the code for the company correct. It is HLG.

Best Wishes
Paper Tiger

Millennials outraged over TV show portraying millennials as outraged

LOL I've had a couple of after dinner drinks and a big feed so I can see the funny side of that. BTW does the resident cat buy his jelly meat online like millennials apparently buy everything now days ?
Would help one's cause a little if they could spell competition too.