HLG - Hallenstein Glasson

[winner69]

So you don't think supply issues, freight etc. will have pushed up their costs by a similar amount Winner ?

I have complete faith in HLG’s management to improve margin even with these challenges

Top notch team

[Beagle]

I have complete faith in HLG’s management to improve margin even with these challenges

Top notch team

Agreed. Currently trading around fair value but an excellent hold for yield, is how I see it.

[Ferg]

What I am observing with clients is import cost savings due to the high Kiwi dollar are being more than offset by higher commodity, domestic and freight costs. Costs higher than forecast are being recovered by passing on price rises to customers and/or reducing discounts. Yes there might be some short term margin pressure at the likes of HLG, but I too have faith they are well qualified to deal with whatever comes their way. Margins were already under slight pressure with the last release. On a side note, man oh man I prefer the US system where they have quarterly releases......6 monthly reporting in NZ feels glacial in comparison.

[Beagle]

What I am observing with clients is import cost savings due to the high Kiwi dollar are being more than offset by higher commodity, domestic and freight costs. Costs higher than forecast are being recovered by passing on price rises to customers and/or reducing discounts. Yes there might be some short term margin pressure at the likes of HLG, but I too have faith they are well qualified to deal with whatever comes their way. Margins were already under slight pressure with the last release. On a side note, man oh man I prefer the US system where they have quarterly releases......6 monthly reporting in NZ feels glacial in comparison.

Couldn't agree more and you would think with modern computerized accounting systems it wouldn't be too odious to report quarterly.

[Ferg]

Couldn't agree more and you would think with modern computerized accounting systems it wouldn't be too odious to report quarterly.

Agreed. Having been on the other side of US quarterly reporting, many moons ago, it was a right PITA. The deadlines were horrendous and time zones & statutory holidays mean nothing to US companies. One downside (or upside?) of quarterly reporting is the smoothing / massaging of results to avoid surprises e.g. as we see with Heartland. The other issue is Management become unduly focussed on quarterly results as opposed to executing strategy. But all that aside and speaking as a shareholder, I love quarterly reporting.

[Beagle]

Intersting article on this. https://www.raconteur.net/quarterly-...short-termism/

[nztx]

Couldn't agree more and you would think with modern computerized accounting systems it wouldn't be too odious to report quarterly.

The Board & Management of most if not all listed companies probably get to see quarterlies (if not monthly reports)
for any listed company of any significance - whether NZX could cope with a myriad of quarterlies (past mining
reporting currently) could be another matter ..

[winner69]

I’m sure HLG leaders are adopting a strategic approach to pricing actions that will significantly minimize margin leakage during challenging times

It will put them on a path towards pricing excellence, allowing them to recover cost increases and minimize negative impacts to financial performance in a responsible, transparent, and customer-centric manner.

The real benefit of a strategic approach is that it generally leads to enduring gains …..a lot better than a reactive cost plus way of thinking.

[Ferg]

winner - are you on the HLG PR payroll? A PR person could not have worded that better.

nztx - I would be surprised if both Board and Management did NOT see monthly financials. To not do that would be akin to being asleep at the wheel and IMO reckless. In my experience such financial reporting is the norm. In addition, in large organisations where it is hard to get your arms around the entire business, they typically distill their numbers down to daily and/or weekly KPIs - usually $ sales and/or volume metrics. It all starts and ends with sales and would typically be e-mailed out daily by company analysts before the first coffee of the day.

[bull....]

if anyone wants to be reminded why HLG is doing so poorly last mth 3% down compared to bgr up 15% for the mth and whs 9% up for the mth its because hlg is in aus and that market is getting hammered just today retail sales data in aus shows in july clothing sales are down 15%. the smart money went to bgr and whs its not to late in my opinion to board the winners.