HLG - Hallenstein Glassons Holdings

[winner (n)]

Filling in time between races had a quick look at how HLG made $6.7m pre-tax profit more in F24 v F23

Glassons AU sold heaps and improved their Gross Margin. GM up $18.6m but expenses increased by $13.8m resulting in npbt +$4.86m on F23

Glassons NZ saw less sales offset by higher margins and expenses not too bad so npbt down a tad on F23

Hallensteins sold a bit more and had a decent increase in margin and ended up making $2 m more than F23

Always good to see these numbers

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[Fiordland Moose]

regarding divisional expenses, recall there was the implementation of transfer pricing between the subsidiaries in 2h  FY23 (I think 1h was normal allocation and the second half had transfer pricing, but haven't double checked when they implemented it). so the allocation of expenses between subsidiaries may not be like for like for FY23 to FY24, but at an aggregate/total level the movement in expenses still accurate (and same for revenue and margin). 

[Waltzing]

the prob with this stuff is where it is made and how long they can keep the profits going....

of plenty of people around the world who need jobs on sowing machines...

but it all comes down to assembling the threads ...

its not called the rag trade for nothing...

great performance....

makes some other retails look a bit shabby.....

[Basil]

makes some other retails look a bit shabby.....

A lot to like about the steady and methodical way HLG are going about their Glassons expansion in Australia.  Interesting post on the other channel this evening.

She's getting rough in the Retail Rag trade over the ditch:
Another large mob have just bit the dust with Administrators appointed:
Aussie jobs at risk as major retailer Mosaic Brands enters voluntary administration
https://au.finance.yahoo.com/news/au...045627481.html
An Australian fashion retailer with approximately 2,700 employees across 700 stores has entered voluntary administration. Mosaic Brands is behind popular retailers like Katies, Rivers, Millers and Noni B.
The ASX-listed retailer made the announcement on Monday, appointing Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath from FTI Consulting as administrators. The group is now seeking to "capitalise and invest" in five core brands after a recent downsize.
Mosaic closed about 200 stores when brands like Crossroads, Rockmans, Autograph, W.Lane and BeMe were abandoned last month
"Following recent attempts by the company to informally restructure its operations, the Board of Mosaic has determined that voluntary administration is now the most appropriate way to restructure the group," the company said.
Mosaic Brands administration: Retailer behind mall mainstays Millers, Noni B and Katies goes under
https://thewest.com.au/business/reta...der-c-16550798
TheAustralian now appear to be reporting KPMG appointed in as Receivers (behind paywall)
Anyone remember Ezybuy ?
https://www.ezibuy.com/nz/ezibuy-mosaic-brands-ltd.html
https://www.ezibuy.com/nz/ezibuy-about-us

Probably play well into hands of HLG in the Aussie Retail Marketplace

Emphasis added by me.

[Basil]

Shareprice 7 bucks by Friday .... Then 8 bucks by Christmas

You're on fire mate.  Got the $7 call right, even got there a bit early and making great strides towards $8 by Christmas.

[Basil]

Annual report is out today.  Gosh there's a LOT to like about this very well managed business.
https://api.nzx.com/public/announcement/440953/attachment/430797/440953-430797.pdf

[BlackPeter]

Annual report is out today.  Gosh there's a LOT to like about this very well managed business.
https://api.nzx.com/public/announcement/440953/attachment/430797/440953-430797.pdf

Yep, great company. I am sure you are referring particularly to their chapters about sustainability, ESG, ethical leadership and similar. Hey, they take these subjects quite seriously - and good on them!

Oops - didn't one poster (lets leave him unnamed, shall we) recently tell us "go woke, go broke"? ... Ah well,  never mind. People are allowed to learn.

[Basil]

HLG management know their customers love the whole sustainability thing.

[afc029871]

Was looking casually in Bayfair, Tauranga yesterday. Saw a pair of cargo trousers from Kmart at $30. Then passing Hallensteins they had some similar pants for $29!
I didn't have time to have a proper look and it is only one item but to me it shows how competitive they are.
Can also add my biggest holding and the yield is great!

[winner (n)]

Hallensteins have finger on the pulse of the nation

Extend their support of the Naz Warriors ...UP THE WAHS

https://www.warriors.kiwi/news/2024/10/23/hallensteins-extends-partnership-by-two-more-years/

[Basil]

Good move.  For some time, the Hallenstein's brand has been languishing, so they need to keep doing things to lift the profile of the brand and this is good.   For some reason that's lost on this old dog, lots of young guys think the WAHS are tough and cool.  We need Hallensteins to perform well so that the level of imputation credits is kept as high as possible.  Looking forward to the 26.5 cps dividend next month that's over 75% imputed.

[Popeye]

I was silly enough to sell out a few years back, fearing retail Armageddon.  I came to my senses and took a second look at the company, and found myself impressed by how well it was managed, their retailing skills and agility, and their ability to self-fund growth while maintaining a financial buffer through conservative gearing.  They looked like a business that is going to stay in business, with a better than even chance of prospering without the need for everything to go right (favourable winds) to succeed.  So back on the shareholder register I came!

Someone suggested on another thread that there were only 5 good companies on the NZX (probably they were exaggerating), but it got me thinking which are the truly well run companies deserving of investor trust, and in retail Hallensteins (and Briscoes) would be it for me.

Having recovered from my temporary burp of irrationality, I am happy to leave this one in the bottom drawer as a long hold without the need for constant monitoring...

[Basil]

The only numbers Forbar have got right are the 24E ones
If I was those analysts boss I'd say that's rubbish and tell them go back to their computers and get real

Shareprice 7 bucks by Friday .... Then 8 bucks by Christmas

Crickey, you're a legend mate.  HLG quietly making new all-time high's almost every day.

Having recovered from my temporary burp of irrationality, I am happy to leave this one in the bottom drawer as a long hold without the need for constant monitoring...Popeye

That's the best thing about high quality companies with exceptional management and I put TRA in that camp as well.  No need to obsess about the company, just let them get on with their job of growing the business in the years ahead.

[Dolcile]

Someone suggested on another thread that there were only 5 good companies on the NZX (probably they were exaggerating), but it got me thinking which are the truly well run companies deserving of investor trust, and in retail Hallensteins (and Briscoes) would be it for me.

Out of interest, what were the five stocks?

[Basil]

It was a throwaway comment by KW and she never named them but for what its worth I reckon there are more than 5 but the trick is to find a few with genuine growth prospects that are priced on compelling metrics. GARP stocks, (growth at a reasonable price).  This and TRA fit the bill nicely in my view and SUM will too if the property market can get going properly again.  Others love the growth story of IFT, MFT, FPH, EBO to name a few, arguably all of which are already priced for perfection or very close to it.