HLG - Hallenstein Glasson

[Muse]

Lease adjustments when stores cannot open is fair and reasonable. Landlords cannot expect to be immune from Covid.
FY22 was always going to be a challenge, as I have predicted many times already. People will be desperate to go out peacocking again when Omricon is over and all those young handsome and pretty young things will want lots of new clothes to go and strut their stuff. Most of these young things don't have a mortgage so have immunity to higher mortgage rates.

Relatively more resistant to rising mortgages, but not immune (a minority may own homes but ultimately more discretionary income sucked up by rising interest rates will eventually have a knock on effect on overall retail spending). But HLG's customers are highly impacted by rents, which are rising quickly. They are likewise susceptible to negative real wage growth which isn't good for discretionary spending. Particularly with input costs going ballistic and pushing up HLG's retail prices.

Cotton prices by way of example are going through the roof - check this out:

Attachment 13520

I don't see HLG having any particular pricing power. Sure they will raise prices some but will most likely have to absorb heaps. Lower dollar, higher input prices, high freight cost makes for a more expensive product. I hope they aren't still airlifting product that was a rare mistep they got into that position - entirely forgivable given global supply chain issues - but other retails like Briscoes were able to front foot their inventory positions. There are a lot of costs going into HLG and other retailers business and a few headwinds on the demand side too

[winner69]

Bit of a worry that NPAT/Sales going to be less than 7% (last year H1 was 11% and H2 8%)

Seems to suggest that a expense b relativity high expense base is hurting ..... unless gross margin % is gone to hell

[winner69]

Steady on. First half net profit at mid point is $11.6m with mega shutdowns. Second half without shutdowns should be higher.
Might do $13-14m = ~ $25m for the year in what is the toughest trading conditions since the GFC = 42 cps = PE of 15.7

.

Maybe a little higher $25m

[Beagle]

Maybe a little higher $25m

Need to get Tina from Turners modelling some of their new Autumn wear. She's s rock star !
https://www.glassons.com/

[Cyclical]

Need to get Tina from Turners modelling some of their new Autumn wear. She's s rock star !
https://www.glassons.com/

That really isn't helping me focus on the bottom line...

[nztx]

That really isn't helping me focus on the bottom line...

Hahaha - Very Good

[Beagle]

5432 trading days in the six months lost is an unusual way to describe things.
Doesn't mean much until you start to break it down. 5432 / 365 = 14.88.
Same impact as one store being closed for nearly 15 years and all the effects concentrated into one six month period...or
10 stores being closed for 18 months...or
30 stores being closed for the full six month trading period and yet sales were only down 6% on last years record (which itself was up 22% on the year before).
Headwinds with freight and a lower currency also a material factor, quite obviously.
I think in the context of that the result is pretty good.

[Rawz]

Sales down 6% but profit down 41%
What does that mean?

[nztx]

Sales down 6% but profit down 41%
What does that mean?

Increased expenses around Govt mandates, Covid, etc etc ?

Higher costs of getting product from NZ Warehouse to shops ?

More Lower profit lines selling ?

Higher COGS and shipping costs from offshore ?

Longer lead times for imports to landed here ?


They still haven't done too badly - if KMD's recent results are any indication

[winner69]

Beagle - its 5432 trading days lost out of 20,700 days (26 weeks and 115 stores) they could have been open

That's 26% of the days they could have been trading lost / closed

Quite a few eh