WHS - Warehouse Group

[Waltzing]

W(n) on .esp even being lower for WHS compared to Bris WHS still undervalued at 4.15?

"We have to PM and Hipkins sort this out quick."

Your joking right. They had over a year to deploy systems and blew it... It's just ANZ doesnt even know it yet.

Lucky there is a tablet coming. The Bio Chems call it a "Cool little Tablet".

[bull....]

Chair Joan apparently said divie is dependent on ‘NZ being predominantly at Level 2 or below at the end of October’

Wow 45 new cases in Auckland today ….hmmm

We have to PM and Hipkins sort this out quick.

if tomorrows covid numbers are big i doubt auckland will go level 2 next week maybe level 3 till vaccine numbers are at 80%+

[Waltzing]

Just saw a vertical legs press machine at T7 that looks good. A must have for that explosive Quad power development ... ....

[Beagle]

Chair Joan apparently said divie is dependent on ‘NZ being predominantly at Level 2 or below at the end of October’

Wow 45 new cases in Auckland today ….hmmm

We have to PM and Hipkins sort this out quick.

Her exact words from the analyst presentation were :-

"The Board is pleased to announce a fully imputed final dividend of 17.5 cents per share. The final dividend has been
declared on the assumption that New Zealand is predominantly at Level 2 from the end of October "

What she said is open to interpretation but for what its worth my view of that is that currently New Zealand is already predominantly at level 2.

A very strong result. Looking ahead I have to concede today's covid numbers were disappointing which does open up the possibility of Auckland being in level 3 for some time to come but I note this will affect all retailers and WHS valuation looks truly compelling (on a historic normalized PE of ~ 8), by comparison to the others.

[LaserEyeKiwi]

Revenues up 7.6% on pcp seems a great effort

However according to Stats NZ retail sales in NZ (in the sectors that TWG compete) were up about 16% - TWG didn't keep up with NZ retail spend - they lost market share

That's not good ....esp when looking forward


Interestingly in same period Briscoe Group sales were up 19%

some major caveats with that comparison:

- WHS had an extra week in their 2020 reporting (53 weeks) - so the 7.6% increase in sales is with one less week.
- WHS closed a net of 5 stores last year, so the same store sales increase is larger than 7.6%.

also where is the 16% stats nz figure from? Warehouse financial year runs from August 2nd 2020 to August 1st 2021, and I haven’t seen any stats NZ figures that cover July 2021 yet (the latest reports are for quarter ending June).

also from page 37 of todays annual report:

”We have been able to grow margin without eroding our value perception as a result of our price optimisation programme. Whilethe Group’s sales grew significantly during the year, and at stronger margins across the board, the New Zealand market experienced significant growth in categories the Group doesn’t fully participate in, including restaurants (+23.7%), home building supplies (+16.3%), and health goods and services (+16.0%). As a result of this uneven growth across the market, the Group’s market share declined -0.2 points to 6.0% of total retail sales (including grocery and food)”

[Waltzing]

from MR B "on a historic normalized PE of ~ 8"

yes and why is the market reluctant to give it a higher SP.

Yet for Bris they are happy to pay a premium?

Will have to get the builders in to set up a small gymn.

Clearly the Govt has blown it and border which should be safely open by Jan wont be.

[Beagle]

some major caveats with that comparison:

- WHS had an extra week in their 2020 reporting (53 weeks) - so the 7.6% increase in sales is with one less week.
- WHS closed a net of 5 stores last year, so the same store sales increase is larger than 7.6%.

also where is the 16% stats nz figure from? Warehouse financial year runs from August 2nd 2020 to August 1st 2021, and I haven’t seen any stats NZ figures that cover July 2021 yet (the latest reports are for quarter ending June).

also from page 37 of todays annual report:

”We have been able to grow margin without eroding our value perception as a result of our price optimisation programme. Whilethe Group’s sales grew significantly during the year, and at stronger margins across the board, the New Zealand market experienced significant growth in categories the Group doesn’t fully participate in, including restaurants (+23.7%), home building supplies (+16.3%), and health goods and services (+16.0%). As a result of this uneven growth across the market, the Group’s market share declined -0.2 points to 6.0% of total retail sales (including grocery and food)”

Excellent post, I appreciate your analysis.

"yes and why is the market reluctant to give it a higher SP".
We've enjoyed a nice little rally these last few days but Rome wasn't built in a day my friend.
I don't see the market according WHS the same PE as Briscoes but a normal retail PE of about 13 in due course is a real possibility and if they can do 50 cents per share that's $6.50. Just got to hang in there and hope today's scary covid numbers turbocharge people's desire to be vaccinated so we can get close to 90% by year end and back to some sort of normality in 2022.

[Panda-NZ-]

Lots of cost benefits still to come through -- staff reductions and newer IT systems.

[Waltzing]

"Rome wasn't built in a day "

6 volume's?

Lucky the financials are a bit shorter read!

[couta1]

"Rome wasn't built in a day "

6 volume's?

Lucky the financials are a bit shorter read!

No it took around 800 yrs to be fully completed but a lot less time to be destroyed.