HLG - Hallenstein Glassons Holdings

Dolcile · Mar 28, 2026, 07:53 AM

It's very nice that all segments are showing profit growth.

A lot of chat about current volatility. It will blow over. This is a multi decade investment for me.

winner (n) · Mar 28, 2026, 09:21 AM

Updated this cool chart - F26 is forecast $50m

Come what may -Asian Financial Crisis, Global Finance Crisis, Earthquakes, Recessions, Pandemics and market changes etc etc etc HLG has stood resolute and never lost money this century

Again - the Di impact is obvious

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Habitz · Mar 28, 2026, 10:20 AM

HLG might not have lost money but I certainly did after I'd bought in Nov 2019. The pandemic hit, and the price dropped from just under $6 to $1.60 as I recall. Turners dropped to 1.20 abouts too.

I jumped back in and used all the spare cash I had. Good times.

winner (n) · Mar 28, 2026, 10:46 AM

Repost

Glassons AU the star of the show ....chart has forecast F26 sales

Easy to see the Di Humphries impact - and good that James kept the momentum going

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Dolcile · Mar 28, 2026, 10:57 AM

I just walked past my local Glassons store. Good to see it humming with young women at 10am !

winner (n) · Mar 28, 2026, 11:14 AM

Somebody mentioned a while ago they were slightly disappointed that online sales were still only about 18% of sales

%age slowly creeping up but at the end of the day its a respectable number and highlights the good balance the sales model has between instore and online activity

Online will be back over $100m annual sales soon

Chart shows how important that good online model was during the pandemic

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Basil · Mar 28, 2026, 11:55 AM

No question James Glasson is doing an outstanding job. Glassons Au sales were $50m for FY17 and since coming on board in October 2017 he has driven a six fold increase in sales there which are on track to be approx $300m this year.

He has completly transformed the company from a no growth cyclical N.Z retailer predominantly focused on the N.Z market to be a well proven Australasian growth company with huge growth in Australia over the last 9 years and a very long runway of growth ahead over the next 20 years.

Its also clear he's been working closely with April and mentoring her, who runs Glassons N.Z and we're now seeing the fruits of that collaborative approach with Glassons N Z. profits. I am sure James and April get brilliant advice from Tim Glasson and are well supported by other board members. Very deep experience on the board which is a key ingredient of the secret sauce that makes this company so sucessful.

Looking forward to seeing the growth over the next 10 years and hope I live long enough to see the growth over the next 20-30 years.

I checked with the CFO and he confirmed the low imputation credit level this time is a timing issue regarding tax payment dates.

lorraina · Mar 28, 2026, 02:28 PM

Perhaps you could ask for them to show a video of their new warehouse "picking" in operation at their next ASM.
At last year's ASM the lady chief designer was present .
A lot of very skilled HLG people at the ASM,not only the board ,CFO,CEOs,but senior management such as warehouse manager Sam Glasson,all ready to talk to shareholders.
As I pointed out once before all questions receive full answers.

Basil · Mar 28, 2026, 03:43 PM

Quote from: winner (n) on Mar 28, 2026, 10:46 AMRepost

Glassons AU the star of the show ....chart has forecast F26 sales

Easy to see the Di Humphries impact - and good that James kept the momentum going

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Sorry mate, I looked really hard and all I can see is the sales growth since James Glassons started in the FY18 year. Looks quite flat before then but I'm sure Di Humpheries did a decent job of laying the foundations for growth.

Good idea about the video Lorriana.

winner (n) · Mar 28, 2026, 04:57 PM

Di Humphries do a great job turning Glassons around
Di Humphries has been credited with a successful turnaround for Glassons, as the company has seen significant improvements in sales and profit. Hallenstein Glasson reported a 7% increase in sales and a 25% increase in profit in the year ended August 1, 2016.

Humphries' leadership was instrumental in restoring profitability and boosting the brand's performance. Her return to the company in April 2016 was seen as a key factor in the turnaround, and she has been praised for her ability to lead a transformational change and build an effective management team.

Di left late 2017 and James took over running AU ..... the foundations were in place and he has carried on after Di's good work. Good on him

Basil · Mar 28, 2026, 06:20 PM

2017 annual report here https://www.hallensteinglasson.co.nz/annual-report/2017
See page 4. Interesting how cyclical eps was...no growth. Also interesting how they consistently paid each year more in DPS than EPS. Strong cashflow of the company enables that.

What I find fascinating is that the PE of the company simply has not really budged since I first bought in back in August 2016 at $2.70. EPS that year was 22.9 cps so the PE I bought a cyclical no growth company on was 11.7. Bought it as a dividend stock, was yielding 15% gross at the time. Never expected any growth but its funny how things work out sometimes eh.

Here we are 9.5 years later, proof of growth is unquestionable. If they make say 85 cps for FY26 compared to 23 cps in 2016 that's a ten year proven EPS CAGR of 13.96% and yet the shares are still on the same dirt cheap PE. Go figure ? That's a faster EPS CAGR rate than Turners and over a time period of nearly twice as long since "Tina" started driving strong EPS growth for Turners in 2020. HLG by my contention is probably the most underrated, underpriced and misunderstood well proven growth company on either the NZX or ASX.

The headwinds in the current period that may extend further will not be easy to navigate but we have an extremely talented management team, vast experience on the board, the company has no debt and has never been in a better position to weather any storm with $1.13 per share in cash on hand.

winner (n) · Mar 29, 2026, 08:22 AM

Quote from: Ferg on Feb 11, 2026, 11:26 AMWhoops - picked up the wrong sentiment graph - here it is up to Jan '26:

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Basil ....Fergs chart seems to be saying that HLG PE radio is expanding from its mean ...... in recognition of its performance.

But still on a PE of 12/13 ...... still voting and not weighing?

Basil · Mar 29, 2026, 09:05 AM

I don't want to comment on that other than to say based on my deep value GARP screening formula HLG with a proven CAGR of 14 % would be good value right up to a forward PE of 22.5.

Clearly a company growing at 14% per annum is worth substantially higher metrics than when it wasn't growing 10 years ago.

Market pricing HLG like it's still a no growth cyclical N.Z. retailer despite all the evidence that's no longer the case.

Its been a very rewarding hold for the last ten years and I think its going to be even more rewarding in the next ten as earnings growth and some metrics expansion kick in.
Deserves to be on the same metrics as TRA in my opinion.

lorraina · Mar 29, 2026, 09:37 AM

Growth rate 14% divided by PE of 14.89 gives a PEG of 1.06.
Just over 1 is very modest for a such a well run company with such a solid balance sheet paying a gross yield of 6.79% [NZX site] net yield of 5.58% [ASB site],and a lot of future growth in Australia..

winner (n) · Mar 29, 2026, 10:05 AM

HLG amazing stock / margin management is key to their success

Stock turn over 7 and Gross Margin over 60% of sales.

This leads to every $1 of stock generating $10.96 of Gross Profit - huge return on investment eh

Most other retailers manage $2 to $3 - Universal in OZ quite good at $6.55

World class

For interest sake comparative numbers

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