WHS - Warehouse Group

[Dr_Who]

Went into the barrington mall shop today , didnt look very busy for the time of year

The Manukau Warehouse is packed with shoppers. Had to cue for ages. I have some rental properties out that way, so do shop around there.

disc: WHS shareholder.

[POSSUM THE CAT]

DR WHO how many were actually looking for five finger discounts

[kizame]

DR WHO how many were actually looking for five finger discounts

That is rife in retail,the one positive thing,if you can call it that,is that as well as taking a lot of shoppers away from other retailers,they also take more than their share of these unshoppers,or destockers.

[winner69]

If all the bad times are over and NZers are opening their wallets again then this mornings announcement from WHS was a shocker ..... flat sales in the last 9 weeks .... following a small decline in the 1st quarter

If flat sales equals flat profits then WHS EPS will remain about 25 cents .... so still has a PE over 17 which is pretty rich.

One concern would be 'price deflation' impacts (like craic saying he got a giant TV for $500 odd which was down from $1200) .... ie selling heaps more stuff for the same dollars ,,,,, which isn't good for margins (like heaps more stuff still has heaps more cost sort off) .... so earnings guidance in march will be much anticiipated by many

It was price deflation' which stuffed WHS profits up a few years ago .... and they have stayed at about those levels for some years now

[winner69]

Reading the announcement again it is really a profit downgrade of sorts in disguise .... or warning the market one will be coming soon

Maybe NZ is still stuffed .... jeez if The Warehouse can't sell more this year than when the times were really gloomy we are in trouble

For shareholders the action has to be for management to screw staff more .... averted industrial action pre Xmas .... need to push harder

[Jaa]

Maybe NZ is still stuffed .... jeez if The Warehouse can't sell more this year than when the times were really gloomy we are in trouble

People are reactionary (to bad news)....

For the average kiwi things were far worse this Christmas than last year. More out of work, more with lower salaries, less overtime etc

Its the accumulation of the entire current year's earning's that factors into Christmas spending I reckon not ones hopes for next year as expressed by house and share prices.

Note the opposite is true in reverse for many people. They will spend a pay raise/bonus as soon as its offered and long before it is received.

[kizame]

Reading the announcement again it is really a profit downgrade of sorts in disguise .... or warning the market one will be coming soon

Maybe NZ is still stuffed .... jeez if The Warehouse can't sell more this year than when the times were really gloomy we are in trouble

For shareholders the action has to be for management to screw staff more .... averted industrial action pre Xmas .... need to push harder

Isn't it that big ticket items are the first area of retail to recover from a recession,I would be watching the sales figures of F&P Apl. and Smith City,and to a lesser degree Harvey Norman or maybe to a greater degree now.

Don't like the comment "Screw staff" No company gets very far doing that sort of carry on.Remember their staff are their greatest asset.

[ratkin]

Havent been paying much attention to this stock.
Yesterday recieved the special dividend , was a nice suprise .

Went into the barrington mall shop today , didnt look very busy for the time of year

As predicted , often in that shop and was certainly quieter during the xmas period than previous years. May be store specific as more people would of migrated to the new improved westfield riccarton mall

[winner69]

As predicted , often in that shop and was certainly quieter during the xmas period than previous years. May be store specific as more people would of migrated to the new improved westfield riccarton mall

Good on you ratkin getting that special dividend .... the workers called it a bonus ... just like what senior managers got .... while they were stuffed around and had to work harder under some fancy project name

What the workers don't get is that shareholders want their bit of the action each year .... and come what may sometimes they have to be the sacrificial lamb .... should count themselves lucky they still have a job

Kizmae in his post infers shareholders shouldn't ask management to 'screw staff' because 'staff are their greatest asset' ...... come on Kizame .... get real

Customers (maybe not those wanting the five finger discount) are the centre of the universe ..... they buy heaps of stuff to pay the shareholders their dividends ..... in an operation like the WHS staff are just a means of making that happen and if you don't screw them down enough they'll be depriving (screwing) the shareholders of their decent dividends

You'd agree eh Ratkin

PS .. from your comment about the upgraded mall it would appear that The Warehouse is starting to lose its attraction. More friendly shopping malls with plenty of specials (on more decent stuff) and more Bunnings and Mitre 10 Megas (stock a lot of the stuff The Warehouse does or did) and maybe even Briscoes are starting to chanage the competitive landscape

[Doyle]

WHS is starting too look a bit closer to fair value or maybe even undervalued. At $3.80 divedends will represent a 5.5% imputed return, better than money in the bank, and pretty safe as well. The potential upside is always the possibility of a takeover offer and in the meantime the divedends keep coming in plus the occasional special one as a bonus.

That was probably the biggest volume i have seen the Warehouse trade for about 12 months. Maybe Foodstuffs or woolworths staring to sell out?

Discl: Bought a few shares today having sold out before christmas.