HLG Group sales up 22m in H1 v pcp (+14%). No doubt a lot of catch up sales post lockdown as well as some organic growth. Seems a lot of what have been store sales during lockdowns were later converted into online sales.
But npbt was only up 6.9m - margins hurt a bit but what's a worry is that expenses were up 2.4m on pcp. If you add back grants and rent relief gross expenses were up 7.9m -10% higher. People costs ere up 12% (that's a worry).
without those grants and rent relief npbt would have been about the same as pcp - even though sales up 22m
Besides supply chain pricing failurs that impacted margins it seems that expenses are a bit out of control as well (Mary says 'well controlled' .....hmmm)
Maybe they have too many workers and rents are a problem ....but it is a shame that the 'resilience' they have shown (huge increase in sales) hasn't really converted into real profits.
Always got to look forward but hopefully this is not a sign of what F22 will look like.
I think it's probably too soon to worry about the expenses to sales ratio. I think there were undoubtedly quite a bit of sales lost during lockdown, even with the good online sales momentum, and covid has definitely impacted shipping expenses with all the air freighting they have been doing. The rise in people costs will be driven both by new store openings in Australia, but also the big increases in minimum wage surpassing HLG base pay for retail staff. Future minimum wage rises will decrease as a percentage, even as the value in annual increases likely remains the same, if you catch my drift. I'm not too distressed by the minimum wage increases as although it increases HLG labour costs, it also increases the purchasing power of a core glassons customer demographic.
Interesting - just watching post-cabinet press conference, and it sounds like the large minimum wage increases might actually have finished! likely that future increases will be quite a bit smaller.
Hallensteins store in Cuba St mentioned on radio this morning — shoplifting so rampant the manager doesn’t call the cops any more. Every day and that’s the ones they catch.
Another consequence of government policy failure - a lot of motels full of homeless people etc up that end of town .Big drug raid at one the other day.
One good thing - Hallensteins have cool clothes that this growing market segment love.
.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Hallensteins store in Cuba St mentioned on radio this morning — shoplifting so rampant the manager doesn’t call the cops any more. Every day and that’s the ones they catch.
Another consequence of government policy failure - a lot of motels full of homeless people etc up that end of town .Big drug raid at one the other day.
One good thing - Hallensteins have cool clothes that this growing market segment love.
.
Senior management needs to get on this and employ friggin security asap or have the police monitor. Also work with LL or business association.... apart from the obvious criminal aspect I would have thought this is an employee safety issue and the risk of copycat at other stores. I didn't hear the interview so perhaps there is another side to it.
Senior management needs to get on this and employ friggin security asap or have the police monitor. Also work with LL or business association.... apart from the obvious criminal aspect I would have thought this is an employee safety issue and the risk of copycat at other stores. I didn't hear the interview so perhaps there is another side to it.
It was a piece about most of Cuba St suffering from shoplifting but Hallensteins manager quoted.
Probably a problen nationwide anyway and they possibly lose up to 2% of stock anyway
Last edited by winner69; 30-03-2021 at 09:23 AM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Hallensteins store in Cuba St mentioned on radio this morning — shoplifting so rampant the manager doesn’t call the cops any more. Every day and that’s the ones they catch.
Another consequence of government policy failure - a lot of motels full of homeless people etc up that end of town .Big drug raid at one the other day.
One good thing - Hallensteins have cool clothes that this growing market segment love.
.
glassons is cool , i dont think hallensteins is cool anymore going of my demographic stocktake of what late teen kids thing of it
Originally Posted by Balance
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