Wonder if a slight name change to Rocket7 would help ? ;)
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They need to do something with TP7 but they have leases. A real obligation and always been viewed in retail as quasi debt (more so now under archaic IFRS16 rules). Difficult and expensive to exit. TP7 sells more expensive, high touch products - not like redsheds where people are content to wonder aimlessly without assistance from staff. People want to know about the bike, kayak, snowboard, hiking shoe, sleeping bag, etc.
Temu thrashing themarket. I assume the WHS has pulled back on the heavy adword spend they were doing to bring in customers. But I think the systems that underpin themarket are quite important and central to the other brands and to some extent could be a IT cost centre so not clear to what extent losses can be paired back
WHS already trying to bring bluesheds under the redsheds banner with their store within a store strategy. Only so much you can do to offset an industry in terminal decline.
Important to focus on gross profit and gross margin - not necessarily changes in revenue. Margin did improve although gross profit fell 2%. Gross profit really needs to be growing at ~4-5% or whatever the rate of CODB inflation is just for EBIT to run steady.
Kmart is thriving, Costco looking to expand. JB Hi Fi doing (relatively) well and expanding. Bring up a 20 year chart and clear the business has been in structural decline for the last 2 decades. Hard to see that changing. Business has been in a downgrade cycle the last 18 months and even before todays update is trading on 14x 2024 consensus earnings (which I'd imagine they'll miss). Nothing counter cyclical about this business. My opinion only and GLTAHs. Disc: no position.
Hardly surprising with all the retrenchment & restructuring going on in the group.
Staff morale at all time low in WHS group - that’s one feedback you will get back very quickly if you talk to any contact there who is a non-executive staff.
I went to the local WHS’s gardening section last weekend and it is damning to see so many of the plants half dead (obviously no care or attention) and I wonder why WHS bother! Compare and contrast with the premium presentation at Mitre 10 for eg and one gets the impression of a dying group.
WHS’s glory days are gone and the concept of a lifelong career advancing ever higher within the group is a distant dream.
Consistent with my T7 experiences. Probably 30% of the time you strike someone good.
I'm into that sort of stuff, and have a gift voucher still to use up with T7 - but will avoid if at all possible.
Last major item I bought there was my then 10 year-old daughters bike. Pedal fell off on the first ride - like WTAF???
yep the lease costs become like a noose when a business in struggling. themarket costing them over 20m yr and declining sales to go with it. temu/shein/amazon probably making the sales decline even more now soon to nothing is my pick. they are not big enough to compete with these giants
Lots of nice words and pictures.
https://www.nzx.com/announcements/422346