WHS - Warehouse Group

[Waltzing]

"On 12 November 2021, the Group reported that sales for the first quarter of
FY22 were 14.6% below sales for the same period in FY21, with only 2 weeks of
the quarter not impacted by the COVID-19 lockdown levels."

surely expected... dont see it as dire going forward as some might suggest.

"For the first two months of the second quarter, Group sales were up 2.3% on
FY21 and 8.6% on FY20 sales for the same period."

Ok as expected ....

" This brought total Group sales for the five months ending 2 January to $1,465.9 million, a decrease of
5.7% "

ok .... not so bad...

On line increased sales equals an increase in costs of goods sold. IE the margin was lower as Expected!!!

"Gross profit margin for the first five months of FY22 was 55bps lower than
the same period in FY21 but up 132bps versus FY20."

uummm big deal.... so what...yawn! Gosh only 55 bps!

ok an improvement on Y20 but down on 21, but soooo what..

"The Group is well positioned for the remainder of summer and Back to School trading
periods."

yawn....


Ok NPAT down as being hit really hard by COVID but second quarter of the second half is expected to trade slightly above last year.

DIV might well be as less than last year.

They are saying second half year Y22 will be an on course to match 2HY21.

They then say they are facing some increased costs but these are expected across the entire retail sector and supply chain.

Ok you really cant see the future of WHS from this report you have to wait for the full year picture.

Our back room might be wrong but they usually are on the money and think 3.50 to 4 dollars is the trading range.

Come on winner run the numbers again.

[Joshuatree]

Stop press, I bought a vacuum cleaner from the warehouse,it's cheap as chips but reccoed reasonably highly by my Consumer Bible.Rush in and help your company nownownowtomorrow.

[Beagle]

Hey Beagle …didn’t Nick buy some of your shares at $4.11

Might be able to average down next sub 3 bucks

Yes he did mate and I stated at the time I was very comfortable with my sell decision despite insider buying, CFO also bought some.

Agree that sub $3 is quite plausible. Don't think our Waltzing friend has wrapped his head around the rising costs and ever increasing size of the black hole that is the market. If they're incurring ever increasing losses with that platform at a time of record ever online spending it's got to be a really serious worry going forward. Trying to be the Amazon of N.Z. could well turn out to be a flawed strategy as people keep buying off the real Amazon and other well established platforms at cheaper prices.

Nick loves throwing around that Omnichannel buzzword doesn't he but the more they sell online it seems the more they lose online and cannibalize more lucrative instore sales for "good" measure. I think your mate Nick wastes FAR too much time, energy and resources on his ESG obsession.

I'm half expecting the half year result to lead off with their ESG accomplishments...if it does, you know the numbers that follow are going to be really ugly.

[Dlownz]

When a company releases a result after close its never a good look.

[winner69]

Yes he did mate and I stated at the time I was very comfortable with my sell decision despite insider buying, CFO also bought some.

Agree that sub $3 is quite plausible. Don't think our Waltzing friend has wrapped his head around the rising costs and ever increasing size of the black hole that is the market. If they're incurring ever increasing losses with that platform at a time of record ever online spending it's got to be a really serious worry going forward. Trying to be the Amazon of N.Z. could well turn out to be a flawed strategy as people keep buying off the real Amazon and other well established platforms at cheaper prices.

Nick loves throwing around that Omnichannel buzzword doesn't he but the more they sell online it seems the more they lose online and cannibalize more lucrative instore sales for "good" measure. I think your mate Nick wastes FAR too much time, energy and resources on his ESG obsession.

I'm half expecting the half year result to lead off with their ESG accomplishments...if it does, you know the numbers that follow are going to be really ugly.

Nicks past Omnichannel beagle …yesterday’’s things to do.

He’s into metaverse marketing and other AI things.

Even said so in that piece you posted link to:

…the pace of change will accelerate exponentially. AI will become the master technology that controls all the others - this is already happening but will accelerate rapidly in 2022.

Watch this space

[Beagle]

I think he's over thinking it...much like he's over thinking all things ESG. At the end of the day they are retailers of simple products either online or in physical stores. Suppose he still collects his usual millions no matter what WHS makes so he has to come across as all high tech and fancy and make out he's ahead of the curve. Smells very much like creative corporate B.S. to me.

[Waltzing]

WHS on line trading platform could be integrated to AMAZON's API when it gets here. Our back room sees no problem if the WHS is smart enough in mapping request's to the Amazons REST API.

Now they would incur a routing charge but it would mean that the DEV costs of future development would actually reduce over time.

it will take time for WHS to determine if it is more profitable to run inventory out of AMAZON or there own system at the moment.

Sometimes its costs you more for your own service REST API and databases and some times it costs you customisation.

We are trying to find out more about the platform development they made and are making to in regards to the groups inventory management platforms.

as for the half year numbers we already know they arnt great and the BPS is down 55.

SECOND QTR sales are back on track with HY21 at the moment.

Now that may not last as MR B predicts but at the moment they are reporting back on the numbers.

DISC: yes we sold all portfolio holdings a while back except one.

[winner69]

I think he's over thinking it...much like he's over thinking all things ESG. At the end of the day they are retailers of simple products either online or in physical stores. Suppose he still collects his usual millions no matter what WHS makes so he has to come across as all high tech and fancy and make out he's ahead of the curve. Smells very much like creative corporate B.S. to me.

Nick is a rather strange creature ....and he loves those corporate slide shows .....got to keep up with the latest fads and all that stuff ... and talking about them makes him sounds impressive

Views based on a few meetings with him

[Waltzing]

The results announced today are just a republishing of the market update release in 12/11... which had most of the bad news in it already.

We dont see what the fuss is all about.

2022 will see the roll out of real time inventory management and new north island distribution solutions.

The carbon foot print for this group is significant and they have buildings that have a carbon foot print and extensive freight.

Going forward these types of operations are not going to be able to ignore carbon foot prints.

In Europe its going to be a big issue and it will get bigger here.


THE OLD BAD NEWS THATS APPARENTLY NEW..... NOT!

"Highlights:
• Group sales for 13 weeks to 31 October 2021 were $630.7 million, down 14.6% against the same quarter in FY21 and down 9.2% against the same quarter in FY20.
• Group sales were impacted due to COVID-19 lockdown levels from 18 August – including Level 4 for two weeks New Zealand wide and five weeks in Auckland, with Auckland remaining in Level 3, and Northland and Waikato switching between Level 2 and 3 for the remainder of the quarter.
• Online sales growth of 118.2%, representing 30.1% of Group sales.
• Group gross profit margin was 32.9% for FY22 Q1, a decline of 200 basis points on FY21 Q1.
• New MarketClub and MarketClub+ loyalty programmes were launched on 20 October."

[Beagle]

Try and dress it up all you want my friend but at the end of the day it doesn't matter how you try and slice and dice it ~ $40m is an absolute bloody shocker compared to $111m last year. The timing of the NZX release after market close is a classic attempt to disguise the bombshell.