KMD - Kathmandu

[percy]

I stand by my belief that this company will turn things around given time no matter what anyone else says on here, just saying

What a great day it has been on this thread;first of all Winner69's classic post #632,and now Couta1's.
I am enjoying the great humour!!! lol.

[couta1]

"Hope springs eternal"...you've watched Shawshank Redemption too many times mate

Yeah im a bit of an eternal optimist but then again ive probably weathered a bigger battering on the sharemarket than most on here over the last couple of years and its far from over looking at the red arrow at the bottom of my portfolio by ive learnt heaps and have always found a never say die attitude to come out trumps in the end.

[noodles]

Yeah im a bit of an eternal optimist but then again ive probably weathered a bigger battering on the sharemarket than most on here over the last couple of years and its far from over looking at the red arrow at the bottom of my portfolio by ive learnt heaps and have always found a never say die attitude to come out trumps in the end.

Couta, While I'm not suggesting you are wrong in this case, I consider one of my strengths is admitting that I'm wrong, selling, and redeploying funds. I.e. Sell the dogs, hold onto winners. A never say die attitude is more appropriate to marathon runners, not investment.

[winner69]

What if I said they didn't manage one turnover of stock in the previous 6 month period.
What if I also said they burnt through $30m cash over and above the $1.8m reported loss for the same period.

Nearly $100m of stock is frightening eh, esp when they only sold $73m of goods in the half year.

They have more than 7 months sales in stock .......hope most of it is what the likes o couta wants / needs. Looks like plenty more sales needed to clear this mountain.

Cash burn ....I reckon only $16m in the half ......only, heck that's quite a lot.

No worries though, a turn around is under way I believe and new big shareholder is happy

[h2so4]

Nearly $100m of stock is frightening eh, esp when they only sold $73m of goods in the half year.

They have more than 7 months sales in stock .......hope most of it is what the likes o couta wants / needs. Looks like plenty more sales needed to clear this mountain.

Cash burn ....I reckon only $16m in the half ......only, heck that's quite a lot.

No worries though, a turn around is under way I believe and new big shareholder is happy

Well I hope the turn around turns.

They can always hock off their stock on trademe with a few Harmoney loans.

[percy]

Old stock for retailers is a nightmare.It clogs up the whole system.In the shops it takes up valuable space.New stock can not be displayed because of the old stock.So sales are affected.You can not just turn off the supply of new stock as lead times from China/India are often long.Then where do you put the new stock.Store it in a warehouse until there is room in the shops? Discount the hell out of the old stock to make room for new stock? That leads to people buying up the old stock,but stops them buying the new stock. So we see very quickly old stock is near worthless.Glassons used to give their old stock to the Salvation Army.
Maybe we will see The Army advertising $599 puffer jackets at $29.99?

[winner69]

A must read
https://www.nzx.com/files/attachments/210341.pdf

Chelsea from Forbar asked a few questions, I sense an upgrade from them

Me, didn't really inspire me or instil any confidence for the future. But they say they on track for better times couta

Most telling comment - they have a best,better, good ranging strategy .....and bugger me those stupid consumers / customers are gravitating to the good end. Jeez customers are stupid not buying the best stuff.

And it looks like I am a target being a Summit Club member. At least we are going to get cheaper prices, that should help margins? A lot seems to depend on this summit club,

[BIRMANBOY]

I think Groucho Marx said "I wouldn't want to join any club that would accept me as a member" More to the point..any business that doesn't control their stock efficiently, both buying and sales segments and allows the stock turnover rate to stretch out is going to be struggling.

[Beagle]

Yep, whilst stock at cost is down on the pcp at $97.3m and using a stated GP margin of 59% that suggests a sales value of $237m.
Sales are averaging just on $30m a month so even at the lower stock level as reported this time that's 7.9 months, (call it 8 months for rounding) of total group sales represented by stock as at balance date and that after aggressive discounting to clear slow moving stock as stated by the company !! I'm not quite sure what to make of this other than to suggest some stock must be basically obsolete / no longer in fashion or otherwise extremely difficult to shift ?
Maybe its time for a real sale

[ratkin]

Maybe its time for a real sale

This is a big part of their problem. Everybody now knows that their sales are not real. You see an item with a price tag of 100$ reduced from 300$ , instead of thinking thats a bargain, you just know that the thing has never actually been sold for 300 in the first place.
Massive stores, filled with fleecy crap, at prices you cant trust.