HLG - Hallenstein Glassons Holdings

[Pierre]

Still no news. They must have lots of beans to count. Maybe tomorrow?

[Basil]

Still no news. They must have lots of beans to count. Maybe tomorrow?

Maybe Tomorrow, this will help pass the time. https://www.youtube.com/watch?v=zUiWVLRdvTE

[mike2023]

Tomorrow. Tomorrow...sing along.

[Basil]

When you're riding a "Golden Horse" you can afford to have patience and enjoy the ride.
I flicked the CFO an email yesterday.  Will let you guys know if he replies.

[mike2023]

What does significant cash reserves translate to? Special dividend?

[Basil]

Well positioned to continue their expansion in Australia.

HLG has, in my opinion performed well across the bottom of the economic cycle and is well positioned to capture an uptick in consumer spending as the economies on both sides of the Tasman recover.

https://api.nzx.com/public/announcement/447571/attachment/438684/447571-438684.pdf

[Turkey]

Jeepers...another big women wear chain hits the skids in Australia...185 store 1000 staff ...goneski

https://www.news.com.au/finance/business/retail/major-aussie-fashion-brand-collapses/news-story/decf29ebc06164673f6fc0f38f483c78

Just confirms what a fickle market is fashion and those that get it right like HLG and UNI are being rewarded and those that don't are finding it very tough.

This clean out should help HLG when markets picks up again in Aussie but NZ still a bit struggle street.

Not much comment on HLG update from the zealots....was it a bit underwhelming or below your expectations. I thought it was ok for a tough market..a few headwinds with usd...but they are a survivor.

[BlackPeter]

Well positioned to continue their expansion in Australia.

HLG has, in my opinion performed well across the bottom of the economic cycle and is well positioned to capture an uptick in consumer spending as the economies on both sides of the Tasman recover.

https://api.nzx.com/public/announcement/447571/attachment/438684/447571-438684.pdf

Jeez - analyst forecast for full year 2025 EPS was 74 cents.

Last year (i.e. FY 2024) they made 58 cents.

Sounds like first half year 2025 now just doing as good as last year - i.e. this is actually not a confirmation of previous numbers, but a significant down grade.

Sort of glad I sold out ... but hey - wishing holders an amazing 2nd half ...

[Basil]

Jeepers...another big women wear chain hits the skids in Australia...185 store 1000 staff ...goneski

https://www.news.com.au/finance/business/retail/major-aussie-fashion-brand-collapses/news-story/decf29ebc06164673f6fc0f38f483c78

Just confirms what a fickle market is fashion and those that get it right like HLG and UNI are being rewarded and those that don't are finding it very tough.

This clean out should help HLG when markets picks up again in Aussie but NZ still a bit struggle street.

Not much comment on HLG update from the zealots....was it a bit underwhelming or below your expectations. I thought it was ok for a tough market..a few headwinds with usd...but they are a survivor.

Sum's it up well.    I thought it was a little softer than what the analysts are forecasting, (probably N.Z. sales) but the long term growth story with Glassons AU quadrupling sales in the last 8 years remains intact.  At $8 I have them on a revised target eps of 60 cps, forward PE of 13.3 and gross yield of 8.4%, assuming 53 cps in dividends and 75% imputed.  Happy to hold through the bottom of the economic cycle in which they have performed admirably and looking forward to improved results as the economy on both sides of the Tasman picks up.  I think those metrics make it an attractive long-term hold to enjoy all the growth in the years to come while contemporaneously enjoying one of the highest and most reliable dividend yields available on the NZX.

[winner (n)]

Jeez - analyst forecast for full year 2025 EPS was 74 cents.

Last year (i.e. FY 2024) they made 58 cents.

Sounds like first half year 2025 now just doing as good as last year - i.e. this is actually not a confirmation of previous numbers, but a significant down grade.

Sort of glad I sold out ... but hey - wishing holders an amazing 2nd half ...

That 74 cents would need H2 to be about 60% up on last year H2

Maybe not that much but expect solid growth from here

[winner (n)]

Clothing retail still tough in NZ.

Datamine data shows February sector sales down 2% on last month

Good to see HLG share price recovering from its recent drop and back on track to hit 9 bucks

[0verdose]

Any reason for the last hour tank in price today?

[Waltzing]

NZX 50 rolled over this summer...

NZX 50 at a level where it should hold one hopes...

[Basil]

Volume weighted average price was $7.79. Looks like tiny sell volume at end of day met an air pocket of demand.

[Basil]

Very solid result in a difficult trading environment is how I see it.
https://www.nzx.com/announcements/449177

Great to see Glassons Au sales still growing strongly with sales up 15.8% to $123.9m, more than half group sales of $240m.  Together with Australian sales of Hallenstein's gear made out of N.Z. Australian sales are now the dominant force driving the company's growth in the future.

Very strong cash position of $49.9m, the strongest it's ever been, and represents over 83 cps in cash.  Clearly with multiple competitor failures recently in Australia and their exceptionally strong cash position they are very well positioned to take up new leases and negotiate good terms on them so I remain confident that the growth story in Australia remains intact and will continue for several decades to come.  Hallensteins was a disappointment but surely, we are at the bottom of the cycle for retail in N.Z.

I think they've come through the recession in great shape and are extremely well positioned to continue to grow as the economy on both sides of the Tasman recovers.  My view is eps will be about 60 cps for FY25.  Backing out the near term 24,5 cent divvy due shortly, on a net price of $8 that puts them on a current year PE of 13.3 at the bottom of the retail cycle.  Happy to hold and enjoy the growth in the years ahead.

Possibly worth noting that total comprehensive income including movement in cash flow hedge reserve and foreign currency translation reserve was up 15% to $23.3m, ($20.2m) in the previous comparable period. https://api.nzx.com/public/announcement/449177/attachment/440505/449177-440505.pdf