WHS - Warehouse Group

[jimdog31]

They have cherry picked some highlights here.

"Torpedo7 recorded sales of $37.4 million. This represented growth of 9.4%
compared to FY22 Q1 and sales growth of 57.1% compared to FY20 Q1
(pre-COVID), with three new stores opening in the last 12 months in Petone,
Invercargill and Whangarei taking total stores to 24"

The fy20 q1 figures didn't have several stores Napier, Tauranga, Westfield, Northlink, Rotorua in them , so comparing 24 stores turnover to the base of 16 you would expect it to be higher, but how it reads makes it seem amazing.

TheMarket.com continues to grow with 47 million online sessions in the last
12 months - up 8% from the preceding 12 months. TheMarket.com range has
continued to expand with 5 million active products and over 6,700 brands on
offer from over 1,100 merchants. The launch of Marketplace onto
www.thewarehouse.co.nz is an exciting new channel for TheMarket.com that
will drive ongoing Gross Merchandise Value growth this year.

Are they still measuring the Market on visits & products? Surely they need to start advising $$, Margin & Bottom line. 8% growth in the last 12 months when the underlying loss is massive is only going to mean an even bigger hit to bottom line this coming year.

Circling back here. https://announcements.nzx.com/detail/404808

A bit sneaky dropping this on the 29th December, when they've done the update on the 7th of Jan last few years.

Must be real bad.

[bull....]

Circling back here. https://announcements.nzx.com/detail/404808

A bit sneaky dropping this on the 29th December, when they've done the update on the 7th of Jan last few years.

Must be real bad.

its bad now
wait till 2nd half next yr
my prediction is a retest of $2 some day

[jimdog31]

its bad now
wait till 2nd half next yr
my prediction is a retest of $2 some day

Yep. I predict T7 & Market full year losses will be $30-$35m. And it doesnt look like Noels & WHS are going to make up that difference.

[Muse]

Not good.

If only this wasn’t painfully obvious ages ago.

The WHS thread together with the retail thread over the last year make for rather interesting reading.

[winner69]

Really bad

H1 Gross Profit $s about the same as pcp but CODB up $25m means PBT down $25m

H122 PBT was $68m so H123 about $43m

Disaster stuff

[jimdog31]

Really bad

H1 Gross Profit $s about the same as pcp but CODB up $25m means PBT down $25m

H122 PBT was $68m so H123 about $43m

Disaster stuff

Off course most people are on holiday so you wont see an immediate reaction to the share price but it deserves to go under $2. What are the forward prospects?? Like I've said over and over they need to abandon themarket.com that's a huge drain on the overall profitability of the group and there is zero upside to come from that after years of over investment in the platform. Its 2023, any retailer worth their salt have their own selling platforms, why do they need to be with an aggregator that's going to cannabilize sales at a huge commission.

[alokdhir]

Really bad

H1 Gross Profit $s about the same as pcp but CODB up $25m means PBT down $25m

H122 PBT was $68m so H123 about $43m

Disaster stuff

Mr Orr will be happy that his medicine working ...leading indicators are looking ominous ...which shud be actually good for sharemarkets in next few months ...let market catch up with this theme ...it takes time to wake NZ market participants as they keep looking for clues from overseas without realising that our rates started going higher much earlier then others so we shud be reaching inflection point sooner ....June onwards it will be clear to all ...imo

[Muse]

Guess its not a counter cyclical staple.

Didnt get to 5 bucks last xmas and certainly didnt hit 7 this year either.

[winner69]

So H123 sales going to be about $110m more than H122

But after all that effort they make $20m less after tax ...$26m before tax.

Increased sales impact $38m additional margin all gone from reduced margin %. That much improved margin they gloated about over last couple of years all gone.

And then costs up say $25m

Npat will be about $30m ...not much eh

Reduced margins and increasing costs not a good combo

[FTG]

Lower NZD chickens starting to come home to roost? Feeding through to higher COGS (hence deteriorating GM).

SMT will be keeping their fingers crossed that the rebound in the kiwi (from Oct) continues.