I thought WHS were wasting their time with groceries.
This morning I went to WHS Barrington to buy two jars of coffee.
Three people in front of me at the check out only had groceries..?
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I thought WHS were wasting their time with groceries.
This morning I went to WHS Barrington to buy two jars of coffee.
Three people in front of me at the check out only had groceries..?
I have a feeling WHS Will come out next week to give an idea how the year that ended July 31 went
And probably won’t be that good
Why would you think that?
People still need basics.
If I look at our expenses, our family is spending these days more money with the warehouse group (red sheds, Torpedo 7, the market) than we used to. Wife is even going there to buy butter, flour and some other food essentials ...
Do you think people don't eat anymore? I didn't notice everybody getting slimmer (which probably would be good :) )- and so far I didn't see either people running naked through the streets ...
Hope Nick has got his digital / marketing people sussing out how to make the most of BeReal to widen engagement with consumers?
Good to see they made Caroline Rainsford from Google a real Director (instead of a Future Director) ….as our Joan says “Caroline has a very special mix of skills and experience and as a Board, we’ve found her passion for technology as well as her strategic insights highly valuable as The Warehouse Group continues its digital transformation at pace.”
Deal site 1-day fined $840,000 for lying to consumers about product scarcity
https://www.nzherald.co.nz/nz/deal-s...EX7YX4HNBAGRU/
Whs group fined
Ooops
HNR
heads need to roll and fast ...
1 day is now shifted to the market.com
The first offer was for 18 bags of pascall milk bottles "made with real milk" that was BB 25 June 2020
Not too yum
""made with real milk""
get away .... dont say ... real milk...
well after the NZ film commission wanted to shut down dairy farming and then stated they have not views on the matter only to later state in private that "those farmers are a problem " or words to that sort... who know how long wellington will let you drink from the cows .....
"who know how long wellington will let you drink from the cows ....."
Don't do it waltzing... even though the GDT went up 5 percent and you want to kiss those cows
Cow Jiving ....
https://www.youtube.com/watch?v=bCrz03-OJtY
Dancing with the Cows ....
come on swing with those udders ....
"Classic from Habits...."
Ooops?
1-day didn't belong to the Warehouse group at the time of the offending.Quote:
A statement from the Warehouse Group following the sentencing said the offending graphics were implemented before it took over ownership of 1-day.
"We take our obligations under the Fair Trading Act seriously and accept the charges relating to legacy features of the 1-day website," a statement said.
Are you a speeder if the previous owner of your car used to drive too fast and one of his speed tickets still in the mail?
https://comcom.govt.nz/__data/assets...ember-2022.pdf
Full details in that document linked
Rattle those dags, Here's one for the boomers
https://youtu.be/N9lGMHCgiAM
Yes time for some old fashioned doco's on sheep shearing and other traditional arts and country skills...
the backbone of the country's exports including milking cows, fishing, forestry ect....
wellington doesnt even known what they are.. i can inform that CEO's of government commissions simply believe that farming is a big big problem...ive herd (heard) it first hand.
It will be truely interesting to see the detailed Financials and retail results from the WHS.
a PR disaster
Big fine by dodgy stuff with 1-day
Last year Noel Leeming got told off by CC for 'selling' Kindles they didn't have#
No doubt WHG stores as dodgy as all retailers .... so no worries ....until they get caught
SP on a tear for no reason?
Buoyed by the Briscoes results perhaps? If WHS is in the same ballpark in terms of year on year comparison (and dividend) - then the stock does look cheap. Everyone assuming profits will collapse, if they don’t….
Yep, interesting whether this is a case of somebody in the know buying or just somebody buying the rumour ....
Anyway - September 28th is the day where it all will be revealed to all of us, and we will be wiser for it.
K Mart announces 4 new stores to open this year (not sure if this calendar year-or in the next 12 months) and more to follow. Ashburton first to get one. Probably not good for WHS.
Briscoes man Rod says in these tough times forvsome consumers his plan is of the plan to “try and eat someone else’s lunch”.
This meant if there were 10% fewer people willing to go and buy something it would mean taking customers from the our competitors.
Good old Rod ….he knows the reality of retail …it’s beating your competitors when you havevtoo …..something not in WHS culture
Hope Rod leaves some crumbs in the lunch box for Nick
Sp is up this morning 2c despite the dollar dropping. Warehouse where-else
https://www.nzx.com/announcements/399491
Second highest Group sales ever of $3.3B as Kiwis seek out affordable products in another challenging year
Highlights include:
• Group sales of $3.3 billion, down 3.5% on prior year, up 3.8% on FY20
• FY22 gross profit margin decreased compared to FY21, but improved during the year with FY22 H2 gross profit margin of 36.1% up 140 basis points from FY22 H1 gross profit margin of 34.7%
• Reported Net Profit After Tax of $89.3 million – down 18.3% on prior year
• Adjusted Net Profit After Tax of $85.5 million – down 48.9% on prior year
• Both reported and adjusted NPAT reflect $11.4 million (after tax) reduction due to accounting treatment of cloud computing software arrangements
• Group online sales up 39.8% and making up 15.3% of total Group sales, and within this, click and collect up 54.9% and making up 49.0% of total Group online sales1
• Strong growth in MarketClub, our new Group membership programme, acquiring nearly 600,000 active members in first 10 months
• MarketMedia announced as new unified retail media platform, with retail media revenue growing +23% on prior year to $20.9M
• Final dividend of 10.0 cents per share declared, resulting in full year dividends of 20.0 cents per share.
v• Group online sales up 39.8% and making up 15.3% of total Group sales.
Positive improvement.Still more growth to come from this channel.
reckon there just track back to yr 19/20 figures and div's as inflation bites. yr 21 an outlier
themarket.com i see is continuing to lose big $$ as i called some time ago. $24m loss.
There is no road to profitability here.
That is a whoping 20% hit to groups overall profit.
T7 back into losses. this will increase next year.
Yield appeal also fading with Westpac type Bonds yielding 6.2% with no equity risk ....Not much chance of growth here also ....so 20C dividend should not hold it over $ 3 for long !!!
Lower adjusted profit than I expected
H2 profit margin 2.4% of sales and likely indicator of future profitability (margins and costs under pressure).
Bit of a worry that after selling $3.3 billion of stuff they generated only $7m of cash - and then spent $107m on capex and paid $96m in dividends
The much touted cash mountain of $160m has turned into a pile of debt of $41m
Message to Nick - not a good year really and there's too many excuses and warm fuzzies in your presentation. Hope you realise F23 will be even more difficult and that instead of focusing on doing awesome things' for the world you just get on and concentrate on making a decent profit.
When I got started Craigs gave me a model portfolio. Contained 20-30% bonds and they were recommending laddering them to even out yields / income over time.
Not sure what they recommend now. I did put some money into bonds, not well laddered, but got lucky with the timing...interest rates in general dropped and they were pretty attractive for years. In these times of increasing interest rates personally I would be pretty cautious about how much I put into bonds with supposedly attractive interest rates. Interest rates could well go higher yet. You are taxed on the interest received. And most worryingly, inflation is eating away at your $20 - 30K that you have parked in there for maybe 5 years.
I may well have this wrong...but I'm thinking I would rather take advantage of lower prices to buy stocks that will (hopefully) eventually do well, even if there is a year or two or three of pain. To me this seems a better strategy.
Now...finding the right stocks...that's another question altogether.
Yesterday saw trading in IFT270 at 6.4% yield ...thats the new normal at the moment ....as this has some time to run ...so high yields of Bonds will seep in SP of stocks in next few weeks if not months ...Good bargains will be coming ...I agree buying stocks is better and smarter option then bonds but high yield of bonds help u get those bargains ...that was the main point I was trying to make
OK - Its only the second best sales year in history, must be terrible, isn't it? Margins dropped as well.
Sill - when looking at some of the metrics, it doesn't look quite like the disaster some of the posters here seem to imply:
RoE - 21.2% - not bad. A lot of the high hyped stocks around this forum fare worse.
Debts have been traditionally high, but they managed to reduce them. Liabilities to assets dropped to 67.1% (down from nearly 80% 2 years ago). Sill not really conservative, but clear improvements.
Good to see the market growing ...
Dividend yield of 5.8% (that's without doing all this imputation acrobatics) does not cover inflation, but still - one of the better dividend payers around.
Outlook - sure, they are cautious in the current climate, but I notice analysts expect them to get back this FY to where they were the year before.
This would result in a forward PE of 11.4 and a forward earnings CAGR of 6.2.
Not a bright but quickly crashing shooting star ... but not too bad for a sustainable retailer I dare say.
And yes - I used the word sustainable tongue in cheek, but hey - they want to get there and lets face it - it will be easy for them to make big progress in this direction.
Discl: hold some and looking forward to this and the next fat dividend.
Don't forget though that you need to pay tax on the bond interest, while many of the dividends come with imputation credits (i.e. tax already full or partially paid). A 5% dividend with imputation credits will leave more money in your pocket than a 6% interest payment ...
Just make sure you don't compare apples and oranges!
I give all readers here that much credit that they know Bond yields are Gross while dividends mostly are 28% imputed ...so didnt feel the need to highlight ....What was more important that Gross yields of Bonds is going up fast and its making yield stocks looking expensive if u factor in equity risk premium !!
Yes...they will be attractive to some.
https://www.nzx.com/markets/NZDX
The Synlait one at 8% for a couple of years looks good. They will last that long...right ?
https://www.nzx.com/instruments/SML010
your not worried that a side business like the market is increasingly eating up earnings? the warehouse does all the hard yards in retail and then they topup themarket & T7? 20,21,22 were the best times retail has seen in years and these 2 businesses lost a combined $50m?
What will they lose in a downturn?
... which might be just a reflection on your personal view of a high equity risk and a low bond risk.
As well - bond rates hardly increased over the last three months - I got already in June IFT bonds paying around 6%. Will they go up in the coming months? Your guess might be as good or bad as anyone else's?
Fact is that there are not many countries around which would survive paying much higher rates to serve their debt load, unless we keep a crushing inflation, and if the latter is the case you will be - when it all is over and dusted - glad to own shares in a good company (which is a defined fraction of a company) instead of owning bonds in a currency which might have only fractions of its past value.
I recommend to study e.g. the aftermaths of WWI or WWII - it was not the bond holders who smiled after the event, but the owners (and shareholders) of good production facilities.
Hard to say.
Obviously - if all the geniuses with correctly operating crystal balls sit and publish exclusively on this site, leaving for the company only idiots to hire, than yes, I am worried.
I trust however that the Gauss distribution of talent is evenly applicable for managers as well as for armchair warriors, and in this case I accept that maybe WHS management might have a plan for these two entities which in due course might add value to shareholders.
As well - I have not really a handle on measuring how much value the market adds to the other business units. I am sure it does add some, given that it sells stuff for them, i.e. some of the current losses well might be "wooden dollars" (as one of my previous CEO's used to call intercompany charges). Do you?
I can see how the Market as well as Torpedo 7 fit into the future strategic vision. Whether it will pay out or not, we shall see, but at least they build a vision without writing overall losses (as some of their competing retailers - e.g. Kogan - did).
I remember amazon writing losses for a long time, and it seems to have paid out for them. I remember Tesla writing losses for a long time (and they still do) and I am not so sure about them.
Obviously - the Warehouse group is neither, but I think the comparisons are still valid and relevant.
Hey BP - you're right in some / most aspects re your comments
Most of the stuff WHS do aren't done for growth, it's essentially done to stay in the game
They will continue to plod along and sell about $3 billion of stuff at 'thin margins' and make about $80m/$90m a year - no more or no less (with the odd bad year now and again)
And will do their best to pay that 20 cent dividend every year - Mr Tindall will see to that as his Foundation needs it to continue their good work
That is all one can really expect from WHS
I update this chart each year just to remind me that the Red Sheds are out there but their relevance in the retail world is rather muted .... measure by continuing to lose market share - even when they meant to do well during tough times
The chart is Red Shed sales as a % of Core Retail as per Stats NZ Retail Sales report. I use Core Retail as a market proxy as that's what the company uses at times
I’m not holding WHS, but I doubt many New Zealand retailers would consider the last 12 months “the best times retail has seen in years” when Auckland stores were in various stages of lockdowns for over 3 months, international shipping rates spiked to ludicrous levels and staff sickness levels were absurdly high to the point that some retailers simply couldn’t open stores due to lack of staff.
The result was pretty much as I expected.
Intriguing thing are the sales per average store during the quarter:
* Redsheds: up 1.6% on Q4 last year
* Bluesheds: down 6.9% on Q4 last year
* Noel Leeming: down 1.2% on Q4 last year
* Torpedo 7: down 13% on Q4 last year
and how do this quarters average sales per store compare to Q4 Q4 FY19? In cumulative average growth rate terms:
* Redsheds: +4.8%
* Blue: -1.6%
* Noel Leeming: up 9.5%
* TP7: up 1%
Conscious of average inflation since then, that to me sorta implies redsheds has gone well, still above the inflation adjusted trend line and could see some declines in same store sales and slack comes out of demand. Bluesheds is being annhiliated, to me looks like a segment that has been in structural decline for some time. Noel Leeming has been a firecracker for the group and shareholders over the last few years and helped produce some of those nice divies. But it also signals to me it is at risk of quite a substantial fall in same store sales growth as the work from home nesting finishes up, all that excess discretionary income comes under pressure. Tp7 an interesting one to ponder...same store sales grew 26% in Q4 FY20 (even adjusting for the extra week that quarter), fell 6% in FY21, and another 13% this quarter. Hopefully this implies it is bottoming out. Average store count increased from 18 to 23.5, just under 2 new stores each year, and new stores are immature at the beginning.
Very poor cashflow but some of that coming from a normalisation of the unsustainable prior period working capital position.
More important to keep your eye on stockturn. Trending down across all the brands but still healthy, but I'd imagine that it continues to deteriorate particularly for noel leeming.
Prompted a question on a call this morning from Jarden, who questioned the appropriateness of the dividend paid, given it will effectively be funded by more debt.
Movement from net cash to net debt position, and still have to pay out the just declared dividend.
Another question on the market, on when mgmt thought it might produce a profit. The answer was mgmt hoped it might breakeven in ~5 years from launch (so I guess that implies mgmt hope it could break even in 4 years from today given about 1 year in. I doubt it.). If I had a dollar for everytime mgmt used terms like "flywheel, ecosystem, i'd have a lot of dollars.
I enjoyed in the investor presentation they had 3 different types of NPAT, and not one of them was the reported statutory NPAT of $87m.
Again apparent there are huge legacy infrastructure and system gaps steaming from years of underinvestment which is why capex has been and is expected to remain very high (well above depreciation & amortisation excluding IFRS16 lease depreciation)
Q1 FY23 will very likely be up on Q1 FY22 given Q1FY22 was coved effected (particularly august and september, though october was clean and monthly sales in line with the previous october). Expect a triumphant announcement from mgmt and hoorays from the market when it is announced, but that is the last of the covid effected quarters of FY22. Moreover, Q2 FY22 was the strongest quarter in WHS history and will be an exceptionally tough comparable to cycle, and the most important quarter of the financial year, and my guess is will be a very tough quarter, and downhill from there for the remainder of the year.
People forget how elevated consumer demand remains (even adjusted for inflation), and reserve banks rightly or wrongly are out to bring demand down. What's equally or even more important is what is happening to gross profit margins and cost of doing business as a % of sales, neither of those ones good.
I think its very possible that 20c dividend will come under pressure in the coming years. The brightspot is the company can if they want slowdown on trying to grow the market, as a relief valve to offset other headwinds, but that's a conscious choice required of the CEO and he seems really gung ho on it.
Company has hedged expected next 12 month USD requirements by69% or another way hedged for 8 months, and at decent rates of 67c (although that will be down on FY22 so represents a GM headwind). crucially this covers the critical Q2 quarter. The problem is those headwinds turn into a gale force headwind for COGS after 8 months, where they either try to pass it all on (stiffling demand) or absorb some (stiffling margins). No doubt it will be some combination of the both.
still the company's 2nd best result. question is...where to from here. Lots of headwinds this coming year and next.
For you BP - Group sales growth v growth in Core Retail
Noel Leeming boosted things on acquisition but once that settled down the Group still struggle to keep up with overall retail demand - ie a lesser market presence
FYI Noel Leeming have since December 2020 lost a fair chunk of share of the Electrical and Electronic Sector that Stats NZ use
Never mind - as long as the Group still makes $80m/$90m every year
IT is a nightmare change environment. You need something at the core that is global in this day and age.
If its global you can sell it to the globe less rogue states...
AT least MHJ selling rocks in more than one markets.
You have to hope that the market can increase its market share as most platforms like this run at a loss for a while.
We got around this problem as luck stepped in and someone had a brain wave and a golden egg appeared (quote from Iron Man)....
Yeah I think I heard that right on the call (was listening in but busy doing other stuff), & totally agree.
Lets say they breakeven in 5 years from FY22 (-25m), and improve linearly to BE by FY27, you'd hope to see losses lessen $5m per annum.
Few other bits and bobs.
On overheads: group currently has a WALT of 4years. Defintely got the feeling to expect more store closures. Want to manage rental expense, but currently "in a difficult period"
On wages: question from an analyst: hope to keep wages growth just slightly less than CPI
and an interesting perspective on which brands they expect will encounter more headwinds in terms of gross profit %, but surprised me & want to double check something when i have more time.
Cheers - useful ... and looks less frightening then the Red shed comparison :) ;
Of course, you are right - this does not look like a growth company ... but hey, as long as they don't shrink and keep producing these dividends ... I am happy to keep them in the portfolio.
Can definitely agree with your last line - everything was almost golden for retail (except Auckland had delta lockdowns a year ago) until Omicron arrived and then the **** hit the fan, quickly followed by re-introduction of overseas travel for kiwis to divert discretionary income towards and OCR ratcheting up the demand killer hammer.
Always pays to keep track of the cash
Here's WHS Free Cash Flow over the years
Don't know what went on buy the last six months (H222) Operating Cash Flow (inc rents) was a $106m OUTFLOW and there was also $51m of capex spend -- cash burn of $161m in 6 months ....things seem out of control
Massively red in a sea of green today
Now we know why the instos were not solidly bidding the price higher in 2021 when the yield was so great, and foodstuffs (or was it woolies) sold out their cornerstone. Altho foodst might push back that the comcom/govt inquiry forced them.
They say you either grow into the future or you’re shrinking into the past.
I get the feeling that WHS are into shrinking into the past even though they've spent the best of $75m in a great restructuring over the last 5 years
F22 profits were about the same as 10 years ago ....hmmmm
I don't think I can remember a time when they aren't/weren't restructuring.
I don't think that a lot of people who would consider the Warehouse a growth stock. They are a cyclical with a reasonable reliable dividends and currently a dividend yield of 6.9% and mainly tax free for anybody able to use NZ imputation credits.
Some investors might consider these attributes attractive.
My little spreadsheet cuts off at FY17 but since then they have spent $96.8 million in restructuring. FY22 was the first year in 5 years they didn't book any but I got the vibe it might start up again soon.
On top of the restructuring expenses they have lost $45 million on "the markets" the last two financial years.
It reminds me of this very excellent presentation by Aswath Damodaran - NYU godfather of corporate finance - if you go to exactly 16 minutes in he is describing the warehouse perfectly - sums up how I think about their "the markets" venture https://www.youtube.com/watch?v=c20_S-QgvsA
As an aside - I see that Craigs have revised their spot price valuation of the WHS to 2.54 a share with a 12 month target price of 2.70. Their FY23 DPS is 16.5
I guess broker downgrade cycles do happen
Did a bit of family shopping on Sunday.... went to WHS then Kmart.. (this post is some good ole ST anecdotal evidence so feel free to ignore)..
As a father of a young family that will be spending tens of thousands of $$$ over the next decade on total junk... i think K-Mart is going to dominate the Warehouse. It has some amazingly priced junk and its store is really well layed out. It has a brighter nicer feel about it. I think i am late in discovering K-mart but wow i was impressed. And it was super busy compared to the WHS over the road.
I am yet to go to Costco because its on the other side of Auckland but i feel this will kill WHS dreams of being a big box food retailer.
WHS has gone nowhere in 10 years and probably the same to apply in the next 10 years.
Hope Noel Leeming doing better than what JB HiFi are doing
JB HiFi Total sales growth for JB HI-FI New Zealand was 27.7% in Q1 (July/ Aug /Sept)
Good points made here. WHS has plenty competition in Auckland. What I would like to know is, how many WHS stores are there around NZ and does K-Mart have a store next to every WHS store in NZ. If K-Mart doesn't have a store next to every WHS, then shoppers will go to WHS to shop with not much choice. Just a thought. Another thing I would like to know, what is the ticker cod for K-Mart on the NZX, in case I want to buy into this NZ company. I like to support NZ companies. I do know WHS is paying me a 10c div next week and sp will prob fall a bit after that. It is about 6.5% yld which is still better than the interest I get in the bank for now. The busy season is starting, might help things along.
[QUOTE=see weed;981849 Another thing I would like to know, what is the ticker cod for K-Mart on the NZX, in case I want to buy into this NZ company. I like to support NZ companies. I do know WHS is paying me a 10c div next week and sp will prob fall a bit after that. It is about 6.5% yld which is still better than the interest I get in the bank for now. The busy season is starting, might help things along.[/QUOTE]
K-Mart is owned by WesFarmers - Aussi company, AFAIK not listed on NZX except via Smartshares. The WHS div yield this year is better than 6.5% - Maybe you forgot the imp credit?
You'd think that with WHS sales being up more than 25% in Q! they be rushing out the announcement
Needs some good news
https://www.nzx.com/announcements/402187
Record first quarter sales at The Warehouse as New Zealanders seek value
FY23 First Quarter Highlights:
• Group sales for the 13 weeks to 30 October 2022 (“FY23 Q1”) were $764.7 million, up 21.2% compared to FY22 Q1 and up 12.3% compared to FY20 Q1 (being the last pre-COVID comparative period).
• Record first quarter sales at The Warehouse of $414.6 million, up 39.0% on FY22 Q1, as customers shopped for value with grocery sales up 76.2% and homeware sales up 32.2%.
• Foot traffic increased 61.4% across all brands in FY23 Q1 compared to FY22 Q1 as customers returned to store.
• Group gross profit margin was 32.3% in FY23 Q1, reduced from 32.9% gross profit margin in FY22 Q1.
• MarketClub membership reaches 800,000 members, delivering value to New Zealanders every day.
The Warehouse Group Limited (“the Group”) today reported strong total Group sales of $764.7 million for the FY23 first quarter ending 30 October 2022, up 21.2% on the same quarter in FY22, and up 12.3% on the same quarter in FY20 (being 13 weeks to 27 October 2019 and the last pre-COVID comparative period). FY22 Q1 was heavily impacted by COVID-19 lockdowns from 18 August 2021, including Level 4 for two weeks New Zealand-wide and five weeks in Auckland, with Auckland remaining in Level 3 for the remainder of the quarter.
Only up 21% on pcp
Just as well for the Red Sheds and to a certain extent Warehouse Stationary - Noel Leeming and Torpedo7 must be a bit of a worry.
On their own measures they have lost market share .... overall retail sales in NZ did better than this
Never mind grocery sales up 76% (wonder what $ base was
Market will like the big numbers ....and on an up day
Gross Margin down 0.6% points
If that carries through for the full year bottom line impact of $20m .... hope they fix that pretty soon
Yep, everybody was excited when retailers (and others) margins sky rocketed through early stages of covid and said the high margins were sustainable
Of course they weren't ....and many are seeing margins drift slowly back (revert) to historical levels
Even the smart ones will see this but they will at least end up slightly higher than where they were a few years ago
"customers shopped for value with grocery sales up 76.2%"
Low margin sales increasing will lower overall margin.
No surprises here.
Also remember increasing shelf space for low margin products reduces space for higher margin products.
I found low margin products took more work/time/staff than high margin products.
I always remember a coffee bar next to me that was more like a dairy chips,fags everything.Taken over by a baker who got rid of the lot, and only sold what he produced.Customer count dropped for a short time,then took off.He made a lot of money where the previous owner did not.
They have cherry picked some highlights here.
"Torpedo7 recorded sales of $37.4 million. This represented growth of 9.4%
compared to FY22 Q1 and sales growth of 57.1% compared to FY20 Q1
(pre-COVID), with three new stores opening in the last 12 months in Petone,
Invercargill and Whangarei taking total stores to 24"
The fy20 q1 figures didn't have several stores Napier, Tauranga, Westfield, Northlink, Rotorua in them , so comparing 24 stores turnover to the base of 16 you would expect it to be higher, but how it reads makes it seem amazing.
TheMarket.com continues to grow with 47 million online sessions in the last
12 months - up 8% from the preceding 12 months. TheMarket.com range has
continued to expand with 5 million active products and over 6,700 brands on
offer from over 1,100 merchants. The launch of Marketplace onto
www.thewarehouse.co.nz is an exciting new channel for TheMarket.com that
will drive ongoing Gross Merchandise Value growth this year.
Are they still measuring the Market on visits & products? Surely they need to start advising $$, Margin & Bottom line. 8% growth in the last 12 months when the underlying loss is massive is only going to mean an even bigger hit to bottom line this coming year.
You are a tough man to please ...
But anyway - good to see that the Red sheds and Torpedo 7 are the growth leaders. (nearly) double digit growth even when compared to Pre-Covid times.
Attachment 14301
Not sure why they still bother with the Blue sheds (or blue isles these days) - office stuff is boring.
Noel Leeming - probably worthwhile to drop as well and integrate into the red sheds ...
Noel Leeming sales up 3.3% in Q1
Aug/Sep/Oct period (NL) slightly different from Jul/Aug/Sep period but +27% v 3.3% is a HUGE.difference. Retail data would suggest that 3months to Oct saw higher growth than 3 months to Sept.
Something not working for Noel Leeming?
The FY21 comparison is interesting indeed BP particularly when you consider gross profit dollars earnt during the quarter
Q1 Q3 FY21 FY23 Revenue 738.5 764.7 GP % 34.9% 32.3% GP $ 257.7 247.0
$10 million less in margin earnt relative to FY21. Plus with overheads running hot hot hot that compounds the decline in EBIT.
Optically TP7 growing topline (that much not in dispute) but that's only due to an aggressive store opening programme. Average revenue per store continues to fall: $1.69m in Q1FY21, to $1.63 in Q1 FY22, to $1.56m in FY23 - and that includes inflation. TP7 stores carry the second highest overheads per store in the WHS portfolio, so its not a surprise after TP7 scrapped through to a small profit in FY21 it sunk back down into a loss making position in FY22 and with the decline in revenue per store that could well accelerate.
100% it will. People costs in retail are going through the roof, and most retail rents have some CPI component to them.
The size of the T7s they open doesn't seem to correspond to the locale (typically taking Warehouse stationary leases on)
Margin will also get hammered further as alot of buying is being done in a lower USD range (across all brands i might add)
Noel Leeming sales growth over the years quite interesting
Lockdowns good for them --- maybe when all the computer gear and TVs bought during lockdown will need to be replaced soon to give sales another boost. That be good for them
On the other hand might just revert to lowish growth as seen pre-covid.
But it seems JB HiFi doing better at the moment
Big day on NZX but WHS hardly moved after a sales update
Suppose one could assume market not that impressed with update.
K Mart sales down 1.1% in year to June. Red Sheds sales down 4.3% in year to July
K Mart sales $713m v Red Sheds $1.727
K Mart NPBT $68m v Red Sheds $75m ,,,,,,, less than half the sales of Red Sheds but sort of same profitability
K Mart Gross Margin 40% of sales about the same as Red Sheds
So its all about efficiencies and productivity with K Mart CODB a lot better than Red Sheds
Interesting story, but slightly confused where you've got your numbers from.
This is what the Warehouse reported at HY (but I think that's to July, isn't it?):
Attachment 14335
Good to see that Torpedo 7 saved the day : ) ;
I'm so sorry for confusing you Black Peter
My bad --- I should added 'year to July' after Red Shed sales down 4.3%
Different periods but near enough the same to make a comparison
Numbers here in FY result preso
http://nzx-prod-s7fsd7f98s.s3-websit...491/379868.pdf
On a more serious note are you OK at the moment ... you seem to be saying you are confused quite often these days.