WHS - Warehouse Group

[Bobdn]

Just went to Containerdoor the kayak is available on 15 February...in time for next summer.

Edit: sorry I was a bit hasty with my comment. I see 15 February is the estimated arrival date. At this stage the deal is yet to close, in fact, it's four days and 51 minutes away from closing. "Once we have enough orders to fill a container the deal will go through!" the website says.

If you're not in any hurry Containerdoor might be fine I guess but I'm an impetuous consumer and would prefer to pick up the goods the next day (through the Warehouses marvelous Click and Collect service)

[Ogg]

Just went to Container Door the kayak is available on 15 February...in time for next summer. So its not actually any competition to WHS at all.

They've sold about 500 this year and done multiple loads. The current one is for delivery next Feb. Pretty solid competition in my opinion. I guess if you want one by Xmas then maybe not.

[Bobdn]

ok, I'm probably feeling overly defensive. A 10% decline in a share price always makes me scratchy

[iceman]

Just went to Containerdoor the kayak is available on 15 February...in time for next summer.

Edit: sorry I was a bit hasty with my comment. I see 15 February is the estimated arrival date. At this stage the deal is yet to close, in fact, it's four days and 51 minutes away from closing. "Once we have enough orders to fill a container the deal will go through!" the website says.

If you're not in any hurry Containerdoor might be fine I guess but I'm an impetuous consumer and would prefer to pick up the goods the next day (through the Warehouses marvelous Click and Collect service)

I ordered mine in October and it has arrived in time for summer. Great service and great price !! Bobdn I suspect Containerdoor may be aiming for a customer different to your good self and it is definitely taking away from various retail businesses in NZ. Yet another disruption on a grand scale to our retailers, for better or for worse. Totally unpredictable and the reason I don;t invest in retailers these days.

[winner69]

But a fair chunk of thst growth has come from Noel Leeming and Torpedo7
More acquisitions on horizon to maintain that growth?

Sure have grown since 2012 - revenues gone from $1.7 billion in F12 to just under $2.9 billion in F16

But EBIT is still the same at $125m

But what is an indictment on recent performance is that they are now using nearly $300m more capital (equity plus debt) to achieve this underwhelming performance.

From achieving a ROIC (after tax) of 19% in F12 that has slipped to 11% in F16. I have included profits on property sales as that seems to be part of their business). For most of their history I have admired WHS high ROIC but the new business model seems to be hugely value destructive.

OK, still covering their cost of capital (that's good) but their recent acquisitions (Noel Leeming, Torpedo7) and their foray into financial services has not earned them an iota of economic value - $300m more capital to play with for zilch returns.

The presentations and investor sessions talking about the new 'strategy' doesn't inspire me with confidence. I still believe they have maxed out what they can squeeze out of the business and I reckon that in another 4 years time their financial performance won't be much different from what it currently is.

Punters will still get their say 15 cent dividend because thats what the main share holders demand. Otherwise pretty boring I reckon as a stock to hold and wih rising interest rates a possibility of declining share price. What price a 15 cent dividend over time?

My morbid fascination with WHS continues.

[kiwitrev]

https://www.nzx.com/companies/WHS/announcements/295313

[macduffy]

Is this going to be a meaningful "operating model change"?; a reaction to an executive leaving the company?; or something else, such as a deckchair rearrangement?

[kiwitrev]

Is this going to be a meaningful "operating model change"?; a reaction to an executive leaving the company?; or something else, such as a deckchair rearrangement?

Difficult to interpret the ann. Mac but I do recall NG stating shortly after news of his appt that changes of this nature would be implemented. It's really about cost cutting by driving better synergies. I have no insight how the model operates but a reduction in lease commitments with some sort of consolidation within the group could be worth looking at for starters?

[mikeybycrikey]

So many meaningless waffle words promising so much.

And how does a company like the Warehouse have 4 CEOs??? Surely they could afford to lose at least one more.

[LAC]

Warehouse needs a Costco type model because they have their finger in too many pies and yet I still have to visit 3 different stores (which they own) to get what I need.