WHS was part of the NZX50 as recently as 2017. Has the shareholder base changed significantly since then?
Printable View
They are looking to increase capital expenditure.
What are they up to?
biggest cost savings will come from swas ( store within a store ) probably makes sense on marginal stores to do this , the profitable store will remain stand alone. savings on leases and staff which they say are on there minds as risks. mentioned on this thread donkey years ago swas was the way to go
growth in NL thru value add services + sales and growth in WHS thru home branding , business hubs + sales while maintaining margins and reducing costs
WHS to stop stocking DVD/Blu-rays in stores due to lack of demand (will still sell online, and have some new release titles in store and some school holiday stock). After reading through yesterdays investor day slide deck, I can see how this lines up very well with their inventory management improvements.
I very much approve of WHS effort to become both New Zealand's version of Amazon.com, as well as maintaining profitable physical store network. It is a juggling act though, and usually these sort of attempts are best done by separating management of both efforts, which they sort of have done with themarket.com (but its dependant on how tight a leash management has them on - for instance how often, if ever, does themarket.com offer products from non-WHS owned stores that undercut in price the WHS-owned offerings? If the answer is never, then themarket.com chances of becoming the amazon.com of NZ are slim).
Quarter sales report due this week for WHS possibly Friday... The Warehouse where every shareholder gets a bargain
They take up quite a bit of space in the red sheds, and the section normally devoid of customers. Hardly anyone buys physical copies of games etc anymore, and most people stream music through spotify. As for the movies, with all the streaming services now available there little point buying one in a shop.
Back in the early/ mid 90s those sections of the store would be packed with customers.
Be interesting to see what they do with the extra space.
No more DVDs, no more jewellery counters - and I saw in the investor deck they are adding clothes tables (which they said are common in the clothing retail industry as they allow much more stock in the same floor space.) I wonder if they will move the electronics section (TV/Audio/phones/tablets etc) into the warehouse stationary area in those stores that have it as SWAS (Store-within-a-store)
Seems we have exciting times with all these changes in the Red Sheds
Briscoes just gave a sales update for the last 3 months (Feb - April): up 78% on year ago period (which included a month in lockdown last year), and up 15% 2 years ago.
Local warehouse is packed! Profit upgrade is coming soon?
U went there 6am winner? They opened 9am eh....
Yes ...yes...I dod that sometimes...hahha...showed my lost face or no speaking english face...then they checked me out at the service desk n I skipped a long Q....hahha
WHS logistics network still needs a lot of work. Purchased something on Thursday, and it won’t be available for me to pick up from a Wellington store until Wednesday. Almost a week to get from their distribution centre to a main centre store for collection is far too slow.
Heading to Noel Leeming to buy a new fridge/freezer today. Will be interesting to see how long that takes to get delivered/available to pickup.
I wonder if its because they have alot less staff processing the orders at check out and distribution center. The store at Barrington Chch has next to no check out staff and people lining up.
My Noel Leeming trip to buy a fridge did not go well. Wanted a simple cheap fridge - found a model on the floor and the staff member told me there is none in stock and after checking on the computer he had no idea when an order would be filled. I could order one, but he said it could be months before it arrived and shrugged his shoulders. The model was also not listed on their online store.
Oh...poor customer...hard to please...
over last 10 years, the latest the sales update has landed is the 13th May, so may have to wait until Thursday perhaps for the update. Have to go back to 2010 to find a date significantly later (May 18th)
I use torpedo seven mail order regularly. The service is excellent,often overnight delivery even though we live in a rural location.
The WHS website says Q3 sales update Friday 14th May
The Warehouse Group :: Financial Calendar
https://www.thewarehousegroup.co.nz/...ncial-calendar
Sales still growing ...but not as fast last few quarters ...like more normal growth
Just as well Noel Leeming booming
The 200m profit touted by some not likely ...only 160m
http://nzx-prod-s7fsd7f98s.s3-websit...173/345975.pdf
Full year NPAT $160m
Sitting on a PE around 7.5x at that guidance. Also you'll note the word "exceed"... a smart CEO would know the true expectation is more like $165-170m.
Looking forward to future ongoing large cash distributions.
pretty happy with the update!!!
no doubt this has been discussed a lot, but totally makes sense to use the adjusted NPAT figure - that is the actual profit from operations generated in this financial year, before they repaid $67.6million in wage subsidies that was received during the previous financial yEAR.
So $160 Million NPAT is the real figure.
Also, management said they will be paying "at least 70% of the group's full year adjusted net profit" as dividends, which at $160 million NPAT will be "at least" $112 million+ in dividends this year, which means at current share price the gross dividend yield is 9.4%.
very happy with the update , big margins should mean big dividends
Group gross profit margin was 35.5% for Q3 FY21, up 295 basis points on Q3 FY20 and up 196 basis points on Q3 FY19. Group gross profit margin for the year to date ended 2 May 2021 was 36.0%, up 267 basis points on the same period last year, and up 320 basis points on the same period in FY19.
i think its cheap at 7.5 p/e with attractive div yield and scope for bigger dividends based on there strong margins.
If we include the Feb special dividend in the planned 70% dividend distribution of adj-NPAT, then end of financial year dividend will be at least 18c per share for a total of 36c in dividends paid for the entire year. Potentially higher.
Good strong update, very happy with that. $160m looks very conservative...good that some companies know how to be conservative. Looking forward to a guidance upgrade in due course.
Positive coverage in the muggle press:
https://www.stuff.co.nz/business/125...strong-trading
Fantastic result and happy long term holder too. What a turnaround.
Market slack az today .....hasn’t caught up with the WHS news
Looking forward to some more large dividends in the future. As for the shareprice, who cares, if you think it cheap buy some more !!
Great update. So come July, the PE ratio will be 8 or 9. The SP has plenty of room to grow. Not sure why todays announcement hasn't changed the SP by more.
So, looking beyond the wonderful FY21. What does FY22 and further on likely look like?
Forsyth Barr came out with a note this week after polishing up their crystal ball saying that they didn't expect international travel to reach pre-pandemic levels until 2026 so there will be plenty of people staying at home and spending at home, (not that I think WHS's typical customer, if there is such a thing, is a huge international traveler).
One of my key investment themes is that retail will be "stronger for longer" and I'm backing that investment thesis with large stakes in WHS and HLG.
What do HGH, WHS and HLG have in common? I have finally put 2 and 2 together. No preferential access for brokers analysts. Hence the lack of enthusiasm, the "sell" recommendations you often see on such stocks, and the negative phraseology that accompanies comments extracted through gritted teeth from the supposed "experts" on positive results. They don't get access so they don't put out positive recommendations. Lazy so and so's need to do their own DD without relying on Management. Further, what makes them think they deserve preferential access? Pox on the lot of the them! Nice to see companies coming out with "unexpected" trading updates - that is the companies sticking it to the brokers analysts. Keep it up I say.
You're missing KMD for the quadfecta
Big spend up for beneficiaries in the budget. Not trying to pidgeon hole your typical WHS customer, because there is no such thing as a typical customer and I for one am happy to shop there and support my company but I would think the budget is good for retailers like WHS, HLG and Briscoes.
Without wishing to stereotype :p but is MFB a beneficiary thing?
I have no personal experience, but I know one person who uses it and she's a contractor ... as a millennial she uses it to eat somewhat healthy ... I would have thought that was more the target audience.
Price might go up with less willing hands willing to go harvesting the goodies
and yet more Robertson inspired Large inflation too .. ;)
What did they say somewhere - the Public Dent is now $100K per household
courtesy the current lot's crock of ongoing chapters of feel good, do very little .. ;)
From memory debt NZ $22K/person, USA 4 x this
I'll pay mine off if you pay yours off ;)
NZers have 500k in a mortgage to an aussie bank for comparison.
Though importantly, all NZ made and spent within the country for once lol.
Not anymore bull...now dole day is when everyone got a bargain!
Beagle ...we might get a phone call to take up some of the shares Foodstuffs are discarding
https://www.nzx.com/announcements/372548
Foodstuffs selling their ~9% stake at a floor price of $3.25.
This puts it right in the running for NZX50 inclusion.
Exciting times!
Would love for the warehouse itself to pick up these shares itself in a massive buyback.
What a stunning loss of money from Foodstuffs, the old smartest guy in the room syndrome strikes again. Market up around 250%(incl divvys to be fair) since the smartest guy's (Foodstuffs) capital loss partially offset by dividends.
Suppose it also indicates Foodstuffs view on the competitive threat Warehouse represents to them today. But truly when in the last decade has WHS been a competitive threat to them or vice versa??
@ the time of opening the WHS store in Sylvia Park, the thinking was that WHS was a threat in grocery lines.
That was to be a forerunner of new store format that could do a broader range of grocery than before.
The doors were built to enable cars to be driven in also, so they could be sold from there as well.
How much Foodstuffs s/holding was able to stifle the grocery expansion would be better answered by someone closer to the action.
They own or have an exlusivity deal with a chocolate maker. It could be expanded to other food items using a similar set up.
Warehouse bakeries?
Breads, pastries ie lots of similarity across that sort of thing.
An adjunct to an instore cafe?
Offered at bookbuild price range of $3.25 -$3.41 per share
The threat wasn't warehouse so much , it was the threat that either Foodstuffs or countdown took them over and expanded the footprint .
https://www.stuff.co.nz/business/ind...-the-warehouse
so, will reopening price be changed by the firesale?
A reminder that management said they are currently open to acquisitions - food retailing has shown exceptional resilience over the last year (as it is designated an essential product/service), would love to see WHS have a serious crack at it.
Perhaps could start with an acquisition of one of the few independent food chains and grow from there - something like Moore Wilsons in Lower North Island.
Alternatively they could reboot the food effort in the warehouse stores, maybe go more towards the Costco-like bulk item food deals.
This looks like good news, onwards and upwards.
This explains the gentle massaging of the share price yesterday to keep it at $3.65 :)
The Foodstuffs move was really designed to prevent Walmart or Aldi etc to come in. The block could not prevent WHS from doing it themselves but WHS had already had a disaster in trying to roll out grocery well before Sylvia Park. The block was probably achieved by the time GFC rolled past. Walmart had already been reigned in and Aldi had a battle in Australia, no use opening up a second front. Germany has tried that before in another sphere but as on Faulty Towers goes "Don't mention the ......"
Article clearly mentions ...peak of retail sales . Also timing of this sale also points in that direction .
Maybe cash out time ??