Cheers for your contribution emveha. One of the many good things about this forum is all the eyes and ears out there reporting in stuff the`ve picked up from around. This article however is a little old , H& M arrived October 2016. I still stand by my prediction made 3 months ago that they will disappear into the retail graveyard because of their large store format and cheaper clothing.Wrong so far.... HLG on the other hand seem to have figured the optimum "small and Neat " size. Even there flagship stores in Wellies and CHCH aren't too big.
H&M in Sylvia Park is very popular. I have no doubt H&M will do fine, but I don't think that will come of the expense of HLG. They will never have the same reach as Hallenstein Glassons in NZ. And also so many men's retailers are going under that there's plenty of business left for those smart enough
Apparel down 3.8% v May 2017 following a 2.4% decline in April
Indicates a 'softish' market for likes of Hallensteins and Glassons
But no worries as both are killing the competition and making big market share gains
hey winner you make a lot of post like this....eg such and such a fact then no worries, and then some expansive positivity.
to be honest to me they sound a bit sarcastic.... is that what you intend or not?
Apparel down 3.8% v May 2017 following a 2.4% decline in April
Indicates a 'softish' market for likes of Hallensteins and Glassons
But no worries as both are killing the competition and making big market share gains
Cheers for that W69. 2 winters ago the average 5 winter month apparel NZ spend was 307.8 mill and HLG made 6.9 mill NPAT, last winter the ave spend for the same 5 months was 306.4 mill (down 0.5%)and HLG made $8.1 mil NPAT (up 17.4%). The first winter month sales of this year is 304 mil so quite a bit down. As hungry as we all are for this kind of "heads up" there really isn't any correlation between NZ apparel spend and HLG`s NPAT. The only enemies I've observed for HLG as stated before are the USD and an unseasonably warm winter. Obviously no worries about the USD or NZ being too warm right now. Not sure about Melbourne`s temp but anything under 25c feels cold to them so should be ok.
Cheers for that W69. 2 winters ago the average 5 winter month apparel NZ spend was 307.8 mill and HLG made 6.9 mill NPAT, last winter the ave spend for the same 5 months was 306.4 mill (down 0.5%)and HLG made $8.1 mil NPAT (up 17.4%). The first winter month sales of this year is 304 mil so quite a bit down. As hungry as we all are for this kind of "heads up" there really isn't any correlation between NZ apparel spend and HLG`s NPAT. The only enemies I've observed for HLG as stated before are the USD and an unseasonably warm winter. Obviously no worries about the USD or NZ being too warm right now. Not sure about Melbourne`s temp but anything under 25c feels cold to them so should be ok.
Correct Naverick but there is a very strong correlation between HLG H2 NZ sales and these card spend sales for the corresponding periods.
In 2015, 2016 and 2017 HLG second half sales in NZ have basically grown in line with card spend. There ‘market share’ on this numbers has remained about 5.0%. Essentially if card spend is a de facto market size HLG stores haven’t grown market share.
As you are no doubt aware npat is also impacted by other things like margins and expense. The npat figures you mention include these factors....as well as including what happened in Australia.
So if anything the ‘heads up’ from that card spend data is that HLG NZ sales in H2 this year possibly might not be as robust as some think. Nothing else than that ....and top line growth is a key driver of profit growth
Hopefully margins are still improving and expenses remain under control and Aussie is still booming .¿if so no worries about the expected record profit being reported
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
NZD holding just above 69 cents according to ANZ securities this morning. Still in the multi year band of 69-74 cents and I am sure HLG use forward cover to buy their currency forward when it pops up from time to time and mange this extremely well, just like they manage the rest of their business.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Originally Posted by Maverick
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