KMD - Kathmandu

[percy]

I refuse to be an apologist for Kathmandu. However, I think there needs to be some balance in arguments from posters. As I have claimed before, it is a highly successful business. To date we have to say it has expanded successfully into Australia and although it is highly leveraged it still seems to be making a profit. It is hardly the only business around that is not currently priced higher than its IPO. Just as an aside, can anyone explain why Fisher Funds have put money into this business? I would have thought their track-record was pretty good in picking winners and that they do the hard yakka homework. Fisher does tend to be in for the long haul however, and rides the ups and downs.

Yes it was a very successful business,but I think their business model of 3 large sales a year is weak.With retail being terrible here and in Aussie I think they will struggle.Halinsteins and Briscoes have surprised me with their good reults ,great retailers with strong reputations for supplying good products at fair prices.I brought some CVT not that long ago at 85cents when Fishers sold out,so they do not allways get it rightI

[winner69]

Yes it was a very successful business,but I think their business model of 3 large sales a year is weak.With retail being terrible here and in Aussie I think they will struggle.Halinsteins and Briscoes have surprised me with their good reults ,great retailers with strong reputations for supplying good products at fair prices.I brought some CVT not that long ago at 85cents when Fishers sold out,so they do not allways get it rightI

From an operational point of view KMD is a great company and probably will continue to be one going forward.

In spite of percey's 'weak model' it makes superior margins than BGR and HLG

A reported Gross Margin of 63% is fantastic .... and so is a EBIT margin in excess of 20% - compared to BGR at 7% and HLG at 13%.

Rod is true retailer ... buying and selling stuff and making a buck on the way through but interestly not as many bucks as HLG do.

At a 20% EBIT margin (63% gross) after all the sales you wonderwhat sort of margins KMD make on the ticket price eh ..... but one thing the prices are high before the discounting ..... so isn't that clever retailing

I agree with cycat64 - we shouldn't be thinking KMD is a dud .... it's just that it'd previous owners did a great job in seducing punters into paying over the top for a good company

KMD will continue to thrive .... pity the shares are overpriced at the moment ... I'd buy them at 120 odd and seeing they have left a bad taste with many punters I reckon I'll get my way

Amazing what the 'halo effect' does eh .... all of a sudden HLG and BGR have great management and are well run .... while KMD is a dog. On financial performance I'd rather own KMD

[percy]

From an operational point of view KMD is a great company and probably will continue to be one going forward.

In spite of percey's 'weak model' it makes superior margins than BGR and HLG

A reported Gross Margin of 63% is fantastic .... and so is a EBIT margin in excess of 20% - compared to BGR at 7% and HLG at 13%.

Rod is true retailer ... buying and selling stuff and making a buck on the way through but interestly not as many bucks as HLG do.

At a 20% EBIT margin (63% gross) after all the sales you wonderwhat sort of margins KMD make on the ticket price eh ..... but one thing the prices are high before the discounting ..... so isn't that clever retailing

I agree with cycat64 - we shouldn't be thinking KMD is a dud .... it's just that it'd previous owners did a great job in seducing punters into paying over the top for a good company

KMD will continue to thrive .... pity the shares are overpriced at the moment ... I'd buy them at 120 odd and seeing they have left a bad taste with many punters I reckon I'll get my way

Amazing what the 'halo effect' does eh .... all of a sudden HLG and BGR have great management and are well run .... while KMD is a dog. On financial performance I'd rather own KMD

I would wait until they are below $1.20 if you were buying them.The way they are dropping you may get them at $1.00.Then again you may be able to pig out at 95cents.The trend is down and will continue.

[winner69]

Retail sales in NZ are all that bad ..... last 12 months sales are up on the previous year and with low inflation prob volumes have held up probably well

Its not all gloom and doom really .... just that growth experienced in the past has gone away for a while

Chart from Stats NZ

[percy]

Retail sales in NZ are all that bad ..... last 12 months sales are up on the previous year and with low inflation prob volumes have held up probably well

Its not all gloom and doom really .... just that growth experienced in the past has gone away for a while

Chart from Stats NZ

Go down to your local mall and ask any retailer what their sales are this year compared to last year over the last 3 or 4 weeks.Top retailer may be down 10% while others could be down over 30 to 40%.
retailers have huge leverage with on going liability of rents,usually set when turnover was a lot higher.With ratchett clauses no relief there.you will note a lot are having sales just to buy a months credit.In the book trade there is a huge problem with largest retailer trying to take supplier terms from 30 days to 60 days.Book publishers,and book trade very concerned.You will note Leemings trying to get themselves a months extra credit by offer 20% disc on all white wear.I just brought a pair of Rockford shoes{made just north of Auckland,in China] were $265. In the end I paid $ 89.90.Unemployment on the raise,electricity prices,food prices,GST, all increasing.Retail is not the place for an astute investor at present.

[macduffy]

Retail is not the place for an astute investor at present.

Unless, of course, you subscribe to the "buy straw hats in winter" school of investing.

Personally, I like to see the trend turn upwards first.

[percy]

Unless, of course, you subscribe to the "buy straw hats in winter" school of investing.

Personally, I like to see the trend turn upwards first.

Me too.I think there will some good buys.

[percy]

Pumpkin Patch results out Wednesday 22nd September ... Michael Hill usually about the same time ... Any other retailers before then?

Michael Hill and Cavalier due on 20th August. No other retailers before then.

[minimoke]

Michael Hill and Cavalier due on 20th August. No other retailers before then.

KRK end year 31 August anticipate a 15% drop in GP

[h2so4]

From an observation point of view, KMD stores are empty. One of their largest stores, Macquarie Shopping Centre (250,000 customers per week) has gone. Wife wont let me buy KMD shares.

Observation mistake. I better get new glasses. KMD store at Macquarie is still there. I don't know how their 70% off sale was going but they had some customers. Wife still wont let me buy their shares. Thanks honey darl.