Originally Posted by
Paper Tiger
I see what people on both sides of the discussion are getting at.
I doubt if the opening of H&M in Auckland on Saturday will see much of a reduction in sales for Hallenstein, Glassons and any other bits of empire. (You can point at the Herald article at the weekend mentioning people queuing down the street to get in at opening if you like).
As other trendy new entrants arrive and expand then yes it may lead to a decline in revenues for HLG. But I am going to go out on a limb here and suggest that they will prosper for a few years. They have survived so far and things do not look dire yet.
Of more importance to their profitability is such things as exchange rates, staying fresh, and having the ability to adapt.
So after a poor year last year and a reasonable entry price then this is probably, hopefully, unexciting source of profits, capital gain and dividends. An investment.
Best Wishes
Paper Tiger
Disc: Generally buy my everyday clothing on the annual Indonesia trip and my technical clothing on my annual UK trip. New sandals where ever the old ones break.