HLG - Hallenstein Glassons Holdings

[winner (n)]

Aust Retail stats for February

Clothing sector up 6% on February last year

So Glassons AU will be doing better than that (share gains) - more than solid start to HLG financial year

[Basil]

Aust Retail stats for February

Clothing sector up 6% on February last year

So Glassons AU will be doing better than that (share gains) - more than solid start to HLG financial year

Fabulous.  2H should be trucking along really well for Glassons Au.
Expecting a partially imputed dividend of 23-30 cents to be declared on Friday and paid in mid April.
First dibs on part of that dividend goes to my new doggie Tony the Pony for a new jacket for his winter walks.  He's caramel colored and very large so feel free anyone to PM me with suggestions with a link...looking for something that is colour coordinated for him.   A warm Tan jacket with black or white trim would be nice.  Don't think Glassons sell those lol

[Hectorplains]

Hmmm, going on their div history and stated Aussie expansion objectives, I think a range of 16 to 23 cps is more likely.  Of course, I'm happy to take higher if they pay it! As to pimpin your pooch, such pampering would make him a laughing stock with all the dogs on the East Coast. Randy the Dandy might have been a better moniker!

[Whome]

Two more sleeps to the HLG reveal. A divi of 23cps should see a good lift in sp. Sitting on a current PE 12.62 .... Add to that a nice imputation credit story, their growth plans in Aus and no bank debt hanging over them should push them up another peg or so towards NZX50 inclusion. Lots to like.

Basil, Tony the Pony might like a nice bonnet to shade his eyes from the sun on those long walks. Could start a new doggie fashion trend!

[winner (n)]

Key number to look out for on Friday is Glassons AU sales number

Have they maintained that 25% CAGR

Whatever, if it ha fallen to 20% pa still a great result looking forward

[winner (n)]

Share price will go up tomorrow by about what the dividend is .....always does this

And if sales to date this brilliant and they have a positive outlook share price possibly over 6 bucks next week

[Jay]

And if sales to date this brilliant and they have a positive outlook share price possibly over 6 bucks next

Next what winner - day, week month year??

[winner (n)]

Next what winner - day, week month year??

....week

[Teitei]

Share price will go up tomorrow by about what the dividend is .....always does this

And if sales to date this brilliant and they have a positive outlook share price possibly over 6 bucks next week

I have my shares ready for you at $6.00.

Come and get them!

[winner (n)]

I have my shares ready for you at $6.00.

Come and get them!

''''and you'll miss out on the price going to 7 bucks

[Teitei]

''''and you'll miss out on the price going to 7 bucks

No sweat.  Always leave something for the next holder.

[Waltzing]

Ok the BOYS and GIRLS are probably running the numbers right now....

Lovely day and some people will be boating...

boy if that is margin compression ....

[Whome]

31 March 2023
HALLENSTEIN GLASSON HOLDINGS LIMITED
UNAUDITED RESULTS FOR 6 MONTHS ENDED 1 FEBRUARY 2023
The Company advises that Group sales for the six months to 1 February 2023 were $223.29 million, an increase of 30.9% over the corresponding period last year ($170.63 million). Net profit after tax was $20.83 million (unaudited), an increase of 74.8% over the corresponding period last year ($11.91 million). The result is in line with the guidance announced to the NZX on 17 February 2023.
Gross margin on sales was 56.5% compared with 57.9% in the prior corresponding period. Margin was pressured during the season by the USD exchange rate and higher than normal freight costs. Freight costs have been coming down in the new season but are still not at pre‐covid levels. During the financial period the business continued to focus on cost controls given the rapidly increasing inflation both locally and globally, reducing operating costs where possible. Inventory levels have increased in order to alleviate disruption from freight delays but continued to be well managed to preserve liquidity.
The current financial reporting period has not been materially impacted by COVID‐19. Comparatively, trade in the first half of the 2022 financial year was significantly disrupted by the COVID‐19 pandemic, with 5,432 lost trading days across the Group.
Segment Results
Glassons
Sales in Australia were $102.89 million for the six‐month period, which were up 43.1% against the prior corresponding period. During the season a new store was opened in Macarthur Square, Sydney, while the Pacific Fair store in Queensland has been extended and refurbished. Further refurbishments are underway, and there are currently a number of sites being reviewed for potential openings in Australia to further expand the business. Glassons Australia made a significant contribution to the overall Group profit results.
Sales in New Zealand were $60.62 million, which were up +13.4% against the same period last year. The lockdowns in New Zealand in the prior year significantly impacted the results of the in‐store performance. There is continued focus on technology and the effectiveness of being omni channel with an increase in investment to support the digital strategy. During the season the Botany store in Auckland was refurbished, and further refurbishments are planned in the next six months.
Glassons continues to lead the way as a fashion brand and has been able to respond with agility to customer demand while remaining relevant in the markets it trades within. Glassons is looking to continue the expansion of the physical store presence in Australia where reasonable and invest in digital in both markets.

[Waltzing]

 might be a buy after all..

SR B is clearing the heads and setting sail for the Bay of Islands.. then ....

[Basil]

First Impressions
A very solid result towards the top end of guidance range of $20.5 - $21m at $20.83m up 74.8% on last year.  Record first half eps of 34.91 cps
Record interim dividend of 24 cps partially imputed - (approx 45% imputed) which is bang in line with my expectations.

Gross margin declined 140 bps due to currency and freight costs but they noted freight costs are coming down in the new season which is encouraging.

Glassons Au sales up 43.1% to $102.89m.  Wow!  Now accounts for 46% of group sales.
Hallensteins sales incl Aust up 32%.    From the annual meeting they disclosed Hallensteins Au sales online had been very strong so I think we can reasonably conclude now that including Hallensteins Au sales Australian sales make up more than 50% of group sales  This is very relevant when thinking about the prospects going forward and the relative strength of the Au and N.Z. economies as well as the low level of market penetration there and huge scope for growth in Australia.
Glassons N.Z. sales growth of 13.9% is a little underwhelming in my opinion considering the Covid impacts in the PCP

Net dividend after accounting for ~ 45% imputation works out to be 18.888091 cps.

Cash flow from operations $35m up 65%
Balance sheet and liquidity looks very strong to me with no external debt and, going off memory here because I didn't take notes on it, about $36m cash on hand, (about 60 cps)

Some store expansion with Glassons Au, one new store and an expansion of Pacific Fair store, (I love that mall) and looking at more.  (I really like their cautious well-disciplined approach to retail footprint expansion).

Hopeful for ~ 25 cps earnings in 2H making ~ 60 cps for the year.  FY23 PE based on that forecast 9.3.    If they can impute future dividedns by the same amount and dividends remain the same at 24 cps per half the gross forecast yield is 10.1%
This is materially cheaper than any of its peers and yet its clear HLG has arguably the best potential for growth going forward.
I think they are performing admirably well as we scrape along the bottom of this economic cycle.

As N.Z's oldest listed company who run their operations in a well-disciplined and very prudent manner it's my #1 investment position on the NZX and the company I trust the most.  Very happy long term holder.

P.S. Opps nearly forgot.  I am very hopeful of NZX50 inclusion when PPH exits the index in late May / early June.  If not then, when the quarterly index rebalance occurs in June or September when either SML or WHS appear they are getting set to get booted out.