HLG - Hallenstein Glasson

[Balance]

HLG has always been a class act when it comes to retailing clothings.

Wonderful to see a retailer doing well in these tough times by offering affordable and assessable fashion.

Well done!

[Goob]

That is nuts. 14% revenue growth in 2nd half? That's while NZ apparel retail sales are in high single-digit declines last few months.

[Muse]

that is in the retail world a 'whomper' of a result. Taking the midpoint of the full year guidance and subtracting out the 1H actual figures implies:

*2H FY24 sales up 14%
* 2H24 GP margin expanding to 62.3% from 56.5% in 1H24 and 58.3% for 2H FY23 (margins traditionally rise in the 2nd half)
* PBT of $27.38m in 2H up 72% on 2nd half FY23
* underlying npat (excluding the one off impact of the tax legislation change for depreciation) in 2H of $18m vs $11.15m for 2nd half FY23 (up 61%)
* underlying effective tax expense looks rather high at 34% but it swings in roundabouts from period to period

Should be noted the year on year % increases look reasonably large given the 2H FY23 was the lowest NPAT result in 5 or 6 years, but to be fair, this 2nd half result looks to be a record one, bringing the full year result to a record level as well.

To do so in this environment in a real achievement so kudos must be given to management. Glassons in Australia, based on some data I watch, looks to be going from strength to strength. Great to see the fall in group GP margins not only arrested but returning to levels more typically seen from FY18 to FY20.

[percy]

Who says retail is going through tough times

Sales +6% and profit up 15%

Not too shabby

In this market I think it is incredible.

[Rawz]

The ROE this company generates is incredible.

And think all the free cashflow this business pumps out + the long runway of growth ahead with Glassons Australia.... HLG should really trade on a much higher multiple to price in those future earnings??

[Count von Count]

I have been in Australian shopping centres a few times this year, once with my tween / teenage daughters. Glassons is always busy, and sells some reasonable quality fashion that my kids (and the others in the store) seem to love. Their positioning and understanding of their market is impressive.

[IAK]

Wow! What a great company. Happy holder.