MHJ - Michael Hill International.

[Rawz]

The low sales growth has really thrown me tbh. I was expecting 10% growth based on the ebit "well above" comment. I didnt know it was going to be basically all margin growth as reported today.

I guess other retailers (whs & hlg) have reported negative sales growth.. maybe 2% growth is all good then?

[Waltzing]

NZ and AUS are tough markets with a LOT of competition.

Canada is outstanding and a surprise.

This is the most disrupted period of trading conditions in decades.

it not as if you get to practise rallying the sales team in a war zone every year.

Its a tight innings and they have the runs on the board.

Same store sales and all stores needs a break down in table format and that might brighten up the outlook a bit.

Same store average was 9.2.

[Muse]

The low sales growth has really thrown me tbh. I was expecting 10% growth based on the ebit "well above" comment. I didnt know it was going to be basically all margin growth as reported today.

I guess other retailers (whs & hlg) have reported negative sales growth.. maybe 2% growth is all good then?

I dunno rawz - as you say all other retailers have negative sales growth, so 2% is still #1 in retail. Everything has been shut. Same store sales growth (despite day’s lost) together with margin expansion - that is the holy grail combination of retail.

Hence why the sp trebling over 2 years…might have another 12 months of growth left in the tank…before a new chapter opens.

[Waltzing]

Same store rawz was pretty good.

AVE 9.2.

score board looks good by any measure.

[Rawz]

Guess you guys are right. Wouldnt it be good to see a normal year of trading..

MHJ is going to do about A$45m in npat this half year. Its quite incredible really.

[winner69]

I dunno rawz - as you say all other retailers have negative sales growth, so 2% is still #1 in retail. Everything has been shut. Same store sales growth (despite day’s lost) together with margin expansion - that is the holy grail combination of retail.

Hence why the sp trebling over 2 years…might have another 12 months of growth left in the tank…before a new chapter opens.

Agree same stores sales growth and better margins the holy grail

But MHJ same stores sales not calculated the normal way. They seem to use days stores were trading in their calculation……whatever this actually means Same store sales reflect sales through store and online channels on a comparable trading day basis and a proportional allocation of Professional Care Plan (PCP) revenue and accounting adjustments, and are unaudited. Same store sales do not include permanent or temporary store closures on a same trading day basis.


Has me totally confused and when I get confused it’s an orange flag. The only ‘correct’ number is that H1 sales were $8m higher than pcp

[Rawz]

And when Winner is confused im concerned lol.

This comparable EBIT or underlying ebit is unaudited, pre-AASB16, pre-IFRIC SaaS-related adjustments, and with normalisations.
What's the normalisations I wonder?

Ah well. Top line will be 2% higher and bottom line will be 15.4% higher than last years $39m npat.

Based on bottom line being $45m ish.
This is calculated using $51m ebit (comparable) which is the mid point of todays guidance and then using last years NPAT/EBIT ratio of ~88%.
I.e. ebit $51m* 0.88= $44.88m npat

[sb9]

I'm happy to continue to hold and collect those divvies, as I've only paid buck less than today's price. Not really that fret with numbers for now...

[Waltzing]

What matters is that the tabulated results are consistent. That they havnt changed the underlying stat method.

I agree that the investor presentations dont have the detail one would desire but as long as they are consistent with the underlying method.

[Rawz]

What matters is that the tabulated results are consistent. That they havnt changed the underlying stat method.

That true..