Hope they got even more with the extended closures in Victoria
Printable View
Interesting chart from Westpac giving an idea how punters are spending in Aussie
off topic and reply to MR B's comments on mr Duke and his products.
Some of the russell hobbs kitchen products we bought from mr Duke just died within a year. We are thinking of bring some dutch stuff back in the bike bags next time..
yes sometimes the sweds can be a bit viking in there raids... whatch out but once you are resident in the country and learn some of the local speak you will find them a very warm bunch... i much prefer riding bikes in sweden than in NZ... here you almost as good as dead in the central north island..its even safer down in holland.. until you live in those country's you just hate coming back and fear for you life on NZ roads.
surfs better here though and no rip curl in holland that i can find..
maybe i will try selling rip curl tops in south sweden summer next time!
In Hallensteins Lambton Quay this morning
In casual conservation with guy serving said that they must still be flat out since lockdown finished .....no no it’s been slack as the last month or so. ....but smiled and said it gives him more time to chat up the chicks in Glassons cos they not that busy either
Felt sorry for him so bought 2 tee shirts....seeing they were 2 for 30 bucks.
Maybe it’s just a Wellington thing
Interesting, maybe the worm will turn? I'm still seeing super-growth in my clients, even in October - although these are not in retail apparel. Nothing has slowed yet. That said, HLG mentioned in their annual report that casual clothes were going well at Hallensteins, whereas the tailored clothing was not performing as well.
It can be hard to reconcile observations and anecdotes with the financials and NZ Stats. From what your chap described it does not sound good. Per the 2020 AR, Hallensteins stores sales were down 9%, as was Glassons NZ which is kind of consistent with being closed for a month of -8% ignoring seasonality. Note Glassons Australia was up 22% which is impressive.
It appears the average annual sales per Hellensteins store is around $1.88m (not adjusted for being closed or for Online) and Glassons was around $2.85m. This equates to sales of around an average of $6k sales per day per store for H and $9k per store per day for G NZ. This feels like a lot compared to your chap's anecdote on Lambton Quay, and also my local store in Hastings. I visited it recently and there were a a few customers on a weekday but no clothing to my liking.
Given online sales are not separately disclosed, their sales must be included in the overall brand sales. Adjusting for 22% online sales (and 15% last year) and also adjusting for the fact the stores were closed for 4 weeks, H sales per store were down 9%, G NZ was down 10% and G Aust was up an impressive 21%. This is assuming online sales can be pro-rated across the reported segments in line with top-line sales. Note the addition of 4 weeks to normalise the closures, adds about 7% to NZ and 9% to Aust for YoY growth. Note that Auckland stores may have been subject to additional losses due to their second closure which will be hard to quantify.
HLG have been conservative over the years (and a survivor) and I imagine that if there are any under-performing stores then Management will be on to them like a limpet, or like a young actress onto an elderly millionaire. If this results in the closure of some stores or range reduction with an increased focus on online sales, that could be good for the bottom line. That is assuming top-line sales are not lost which is not guaranteed.
Hi ferg - yes it can be hard to reconcile observations and anecdotes with the financials.
I shouldn’t really mentioned it as it’s just a little bit of local noise that probably doesn’t reflect the big picture
After all sales were up 11% on last year in Aug/Sep even though 25 NZ stores were closed in August and 11 stores closed in Oz for those 2 months
And FYI paint sales still booming and Mitre 10 and Bunnings are still going gangbusters
Risk free rate has fallen a long way from when HLG was last $6, worth about 1.5 PE extra just on that factor alone by my calculations, as evidenced by Briscoes and WHS share prices. Growth this year is on top of that. Still trades cum a 24 cent fully imputed dividend next month. Hmmm.
looks like you got your wish all companies on notice
Yesterday, Prime Minister Jacinda Ardern said she would be asking the Ministry of Social Development to make do an audit on companies that had taken the wage subsidy offer over the past few months.
That was on the back of companies such as Fulton Hogan, which took up the offer of a wage subsidy then went on to make a huge profit.
"There is a moral question here," Ardern said.
https://www.nzherald.co.nz/business/...4UXPINZP7GKUA/
I think the donkey toothed fairy can take her "morals" and place them carefully where the sun shineth not. The question is merely a legal one for business. Any pretense of "morals" these days is usually a signal of virtue and not in shareholders interest in any way.