WHS - Warehouse Group

[nztx]

The journal entry for inventory in transit is:

Debit Inventory in Transit

. Credit Overseas Accounts Payable (notice the high overseas payables balance, which is a strategic shift in procurement policies)

Some of those creditors may have been paid resulting in an additional:

Debit Overseas Accounts Payable

. Credit Cash

None of this impacts COGS. To calculate inventory days and/or stock turn reduce the opening and closing balances by the value of inventory in transit, but do not change your COGS numbers.

Thanks Ferg - so you're suggesting imported stuff only hits COGS on arrival / clearance
and the bookkeeper then clears the cost of the arrived stuff into P&L Purchases accounts in COGS ?

It crossed my mind that it may have been charged direct on incurring a cost to Purchases sub ledgers in COGS
then balance date adjustments made separating 'still in progress' as a component of their closing inventories..

Hence why I included in previous back of the envelope inventory figures

[nztx]

Oh dear ... I assume critical observations are currently unwanted, aren't they?

Anyway - my trustworthy Giro cylce helmet starts to disintegrate after 26 years of use, so I decided to hunt this afternoon for a new one.

Went first to Torpedo 7 ... and found out that even the basic model (something like $110) didn't offer a visor. Didn't like the colours on offer either. Pretty empty shop as well (I was the only customer) - why are we shareholders paying for empty premises offering goods nobody wants?

Happened to be afterwards in the warehouse and found that a very similar helmet like the $110 helmet in Torpedo 7 is $ 35 at the warehouse (sure, different brand, but same interior, same safety standard and same boring colours) ... same - without visor. Decided to look somewhere else. On my way back to the exit I noticed that most of the articles in the electronic department (like cellphones ...) are on "sold out". Not a lot of customers in this shop either.

Just wondering whether they make a lot of money with putting empty shelves on offer?

Was wondering this morning whether I should buy some more WHS shares (I do have a medium sized holding), but decided after this experience that I don't feel good enough abut WHS to buy more shares ... felt too much like shopping in some postwar socialist country where you buy what's available instead of what you want. Wouldn't buy Intershop shares either.

Anyway - more shares available for beagle, this is good :

Did you leave them with a back order - BP by chance ?

These sort of items may be as scarce as hens teeth here with the way global shipping is starting to look in places
thus justifying being asked an arm & a leg for privilege of getting your mits on the more curious of items not on the shelves ..

[nztx]

Me also bought 20,000 today ...lets hope it works out well ...all positive but someone keeps selling ...who is that W69 ??

dont tell anyone -- Ogg may be liquidating a few to get some readies to load up on his fave hobby stock SKY

[Beagle]

Oh dear ... I assume critical observations are currently unwanted, aren't they?

Anyway - my trustworthy Giro cylce helmet starts to disintegrate after 26 years of use, so I decided to hunt this afternoon for a new one.

Went first to Torpedo 7 ... and found out that even the basic model (something like $110) didn't offer a visor. Didn't like the colours on offer either. Pretty empty shop as well (I was the only customer) - why are we shareholders paying for empty premises offering goods nobody wants?

Happened to be afterwards in the warehouse and found that a very similar helmet like the $110 helmet in Torpedo 7 is $ 35 at the warehouse (sure, different brand, but same interior, same safety standard and same boring colours) ... same - without visor. Decided to look somewhere else. On my way back to the exit I noticed that most of the articles in the electronic department (like cellphones ...) are on "sold out". Not a lot of customers in this shop either.

Just wondering whether they make a lot of money with putting empty shelves on offer?

Was wondering this morning whether I should buy some more WHS shares (I do have a medium sized holding), but decided after this experience that I don't feel good enough abut WHS to buy more shares ... felt too much like shopping in some postwar socialist country where you buy what's available instead of what you want. Wouldn't buy Intershop shares either.

Anyway - more shares available for beagle, this is good :

That is good. I am not looking a gift fat rabbit in the mouth and just playing with it.
You should get out more mate Welcome to the new reality of living with Covid.

Today's successful purchase is getting close to what you want in a product, paying full retail and not waiting an inordinate amount of time for it. That's what the landscape is now...Its just the way things are right across the board with all sorts of things.

[Waltzing]

" helmet in Torpedo 7 is $ 35 at the warehouse (sure, different brand, but same interior, same safety standard and same boring colours)"

many brands of sun glasses come out of the same factory in SWIT or AUT. Each vendor has an office in the building and the production line is set up to rotate between designs....

same factory different moulds and different ratios of molecular properties in the materials used to make the frames and glasses.

More people go to Warehouse than a T7 and the cost accounting means the floor space can be charge out at different rates, also the number of units held might mean one brand is from a farther away manufacture and shipping point.

[alokdhir]

That is good. I am not looking a gift fat rabbit in the mouth and just playing with it.
You should get out more mate Welcome to the new reality of living with Covid.

Today's successful purchase is getting close to what you want in a product, paying full retail and not waiting an inordinate amount of time for it. That's what the landscape is now...Its just the way things are right across the board with all sorts of things.

Though I endorse buying WHS to some extent even if I dont like the management and their business model ....But I dont agree there is a sellers market in retail here in NZ especially for smaller items ...still can get discount on many items including Dyson products ...

[winner69]

Once used to be a saying in retail 'when petrol reaches $2.30 a litre start thinking about a bit of a sales slowdown'

Stuff story says petrol hit $2.36

Just as well old sayings are just that these days - these days are different

[winner69]

Kingfish has 20% of its funds Mainfreight ..far too much

Their portfolio really does need refreshing and take on board some stocks that will get them back to their former glory

I’ve written to them suggesting they get a decent chunk of WHS …get in first before other funds catch on

[Entrep]

Kingfish has 20% of its funds Mainfreight ..far too much

Their portfolio really does need refreshing and take on board some stocks that will get them back to their former glory

I’ve written to them suggesting they get a decent chunk of WHS …get in first before other funds catch on

You could also write to WHS investor relations and at least ask for some compensation for all this good work you are doing for them.

[Beagle]

Kingfish has 20% of its funds Mainfreight ..far too much

Their portfolio really does need refreshing and take on board some stocks that will get them back to their former glory

I’ve written to them suggesting they get a decent chunk of WHS …get in first before other funds catch on

Can't help noticing that IFT, MFT, and FPH make up 50% of their portfolio. All good companies but trading on super high PE multiples and one has to ask if that's proper diversification. http://nzx-prod-s7fsd7f98s.s3-websit...154/350920.pdf
I see they've finally cottoned on that RYM are overpriced and disappointed Gordy has left. Only took them 7 years longer than you and I that called RYM overpriced in 2014, (and its dramatically underperformed the sector and market since). In my opinion the magic ended when Simon Challis left and Gordy as his understudy has been a poor shadow of the true legend that made RYM really shine in days gone by. I think its clear they need an infusion of new idea's. You and I would make a fearsome team running the show at Kingfish, I think we've missed our calling