Good to see Canada sales getting back to pre-covid levels
Good or a worry -- most retailers seem to have a good couple of years with current sales level (annual basis) quite a way above pre-covid levels in spite of lockdowns etc ..... ie they've done well capturing the pent up demand plus.
Checking back Canada sales are much the same as they were at June 2018 .... and margins not much better ....and profit doesn't seem to have improved either
Hey rawz - whats going on with Canada, the icing on the Christmas cake
Suppose you'll tell me ....it's all about the future
Not sure tbh mate. What about the store count? I’m guessing it’s shrunk. Maybe the sale of the Canada store finance book has impacted the numbers as well?
CFO said in the agm last year that he watches the store metrics very closely. The theme of the business seems to be make more with less. As long as EPS goes up that’s all that matters
Got some MHJ when they were cheap ... only reason probably .... and basically followed the rhetoric and hype since without doing any proper research.
The rhetoric about record Q2 sales and 10 consecutive quarters of same store sales growth and all the big percentages they seem to produce in their quarterly updates plus all the other stuff they rave about doesn't show in the chart below.
Seems a pretty ordinary effort to me .... even allowing for store closures and all that stuff .... and gross margin doesn't seem to have improved that much
The big question is whether will we see any decent sustained sales growth in the next few years - if not MHJ not cheap at moment
Lucky that I've done more than OK but I should have really checked whether rhetoric matches the numbers
Last edited by winner69; 16-01-2022 at 09:05 AM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
aye. i don't begrudge any retailer (or anyone else) for keeping the wage subsidy when they were legally able to do so. The downside, however, it makes YOY comps harder, assessing what is maintable more difficult, and I dont think it fair to do a multiple on earnings keeping them, as its not a long term or high quality source of income (IE, it is worth the net of tax cash rec'd and nothing else). I dont know how much MHJ has rec'd - loads I suspect. HLG rec;d over 13 million in the 2 years to august 2021. I wish briscoes had kept theirs but handed it all back - the only upside is going forward they won't cycle off them. When doing a deep dive on the underlying economics of each business best to take the subsidy out, so as to see the true underlying profit and implied valuation metrics based on operating earnings. makes a pretty big impact
Moose FYI - MHJ received subsidies of A$17.7m in F20 and A$14.6m in F21. They don't count this in their Comparable EBIT
But most recipients of subsidies had windfall sales after lockdowns..... MHJ don't seem to have achieved this
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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