TWG quarterly sales update don't include TheMarket or 1-day sales ..... or the chocolate factory sales
Always thought that a bit weird .... from a transparency point of view
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TWG quarterly sales update don't include TheMarket or 1-day sales ..... or the chocolate factory sales
Always thought that a bit weird .... from a transparency point of view
A good starting point for other retailers with online operations is none of full year presentations have $21 million operating loses in a bar chart next to their online division.
A macro sense check are the margins the warehouse makes. EBIT margins of 2.8% & 8.2% across FY20/21 - briscoes were 19% in FY21. Something is going on and it isn't just relative product mix.
I've been involved with a few retailers over the years its not terribly difficult to establish a good online sales channel. There are plenty off the shelf services and most of our NZX listed retailers do it well and profitably. Same for the many privately owned retailers with strong, growing and profitable online operations.
BP - We can't know the back office methodologies of how WHS applies cost to various divisions within their company but one would hope they are consistent from one year to another so the decline in top line sales for the market and sharp increase in bottom line loss must be concerning given the operating environment was so much more favorable for online growth in its most recent full year. People will see what they want to see I guess.
I think with WHS is better to zoom out and have a look at the big picture. The only year in the last ten they made decent money they gave all the extra profit back to the Govt kowtowing to ESG pressure. I think that's absolutely ridiculous and contemptuous to shareholders. I had hoped that FY21 was the start of something new...a new chapter if you like and a springboard to bigger and better things for the group. That view I held in 2021 looks far too optimistic now.
chart starting to look in free fall... 2.20 surely not... 2.70 next stop..
Nick seem to have gone quiet on the investment in Zoom
Hope it’s going well ….maybe a mention in half year report.
Gains are disappearing faster than a thief into the night.
For sure, the sinking NZD won't help. I haven't been to a Warehouse for a couple of years now. I assume they still import most of their goods rather than source them locally? Fuel prices; shipping costs and the exchange rate must be big factors in their business.
I feel like many havn’t even looked on themarket.com - it doesn’t just sell The Warehouse group inventory, it is also an aggregator of other non-warehouse owned retailers. For instance I purchased a $360 handbag for my better half on there in November from Saben. The transaction was done on themarket.com, but fulfillment was done directly from the Saben store in Auckland.
Yes it should be spun off ASAP. WHS can have shares in it if they want and a board seat or 2...
who would even set it up as part of the group except as a stake holder...
if it was profitable of course.
Oh very interesting! Thanks for elaborating a bit on the business model with that 15% commission figure. I wondered how they were able to run sale promotions like they did on singles day and Black Friday where they took 11% off site wide (presumably they are digging into there commission to offer that)