HLG - Hallenstein Glassons Holdings

[Basil]

I'm told young Wellington ladies are raving about Lululemon stuff ...better than Glassons they say

Can even invest in them LULU on Nasdaq

Pretty good company too, trading at 46 times FY23 earnings though 
12% sales growth projected for 2024.
You're welcome to it mate, fill ya boots 
HLG at $6 on a FY23 PE of 9.7 based on my estimate of 62 cps in earnings.
Got chatting to Whome today and we both wonder if James Glasson is going to come over here for a while after Stuart Duncan leaves and work some of his magic sorting out Glassons N.Z. and maybe Hollensteins too ?

[Waltzing]

The Treasury numbers arnt expecting a recession in NZ this year... according the interview today from the olympic minister..

with the Boomaroo budget and no recession retail looks set to continue chugging along..

also must be good for TRA...

[Waltzing]

from Business STUFFED this morning "the ATO TA TA" new site for the WOKIE DOKIE brigade ...

GOOD NEWS!!!!

"A recession may not be a certainty this year, but that doesn't mean things will be any easier for households, economists say.

When the Budget was announced this week, it was revealed that Treasury no longer expects the economy to enter a recession.

The Treasury is forecasting relatively robust economic growth of 3.2% in the year to the end of next month, and a more tepid 1% rise in GDP the following year.

The "strong economy" would weather the storm of a "challenging global environment" and the Treasury now expected inflation to drop back under 3% late next year, the olympic minister said."

https://www.stuff.co.nz/business/300884341/recession-or-not-brace-for-tough-times-economists-say

The wait will seem long though as winter days drag on ..

" official cash rate (OCR) was likely to need to rise to 6% "

and that will keep SP's depressed ..

[Waltzing]

6.23....  stunning day... are we seeing the Boomaroo budget in action here?

[Waltzing]

Looking goood...

[Basil]

Great company but I'm not expecting much to happen for 3 months until late August when they update the market on 2 H Sales and annual profit forecast.

[winner (n)]

Universal Stores in OZ raved about F23 sales going to be a record

But then they said this -

More recently, trading conditions observed throughout April and May to date have further tightened indicating that some customers are reducing their spending. The Group expects this subdued environment to continue for the balance of FY23 and into FY24

And the UNI share price plunged 25%

Jeez ....hope this never happens to HLG

[Fiordland Moose]

Yup. Update was miles from consensus. Similar customer demo to HLG (same age but slightly more menswear focused). Pleased I took my UNI profits at A$6 and bagged a div on the way.

CBA retail & apparel card spending for OZ taking a hit.

Complete aside - a bit of a hit job on HLG today in the NBR from their resident left wing reporter on their ESG credentials. Was a bit silly as HLG's baptist church audits have been pretty good

[lorraina]

Crikey you did well selling at A$6.00.

[BlackPeter]

Yup. Update was miles from consensus. Similar customer demo to HLG (same age but slightly more menswear focused). Pleased I took my UNI profits at A$6 and bagged a div on the way.

CBA retail & apparel card spending for OZ taking a hit.

Complete aside - a bit of a hit job on HLG today in the NBR from their resident left wing reporter on their ESG credentials. Was a bit silly as HLG's baptist church audits have been pretty good

Hitjob? Lets face it - HLG's credentials related to their environmental and responsible sourcing policies are next to zero. From memory - they got in the last independent assessment a 2 out of 5 with e.g. Kathmandu getting 5 out of 5.

I've seen that in other places as well, but here is one link: Glassons - NOT GOOD ENOUGH!

https://directory.goodonyou.eco/brand/glassons

I recon their customer base is going to fade fast if they keep ignoring the environment and basic human rights ...

[Fiordland Moose]

I thought the article was unfair.

The most comprehensive publicly available review of fashion brands ethical credentials comes from the Tearfund Baptist Ethical Fashion Report which gets released every year. Glassons is in the top 20% of brands - the article didn't mention that. Those audits recently changed in the scores they award - previous an A to F rating - and now give a numerical output. If I recall correctly glassons at one point got an A score prior to the change.

NBR article didn't mention that even though it was directly relevant to the story.

The low score in this oxfam thing came because they declined to provide information on its suppliers to Oxfam. Why they voluntarily entered the oxfam review and then didn't stump up with information is unusual & undesirable. The low oxfam score was mainly because they failed to provide supplier names - not because of something untoward found during oxfams review. They should either provide the information or withdraw from the review.

Agree its increasingly relevant to customers & something that should be taken seriously.

[Waltzing]

Not sure the glassons client base are thinking about ESG when they shop do they?

Just saying as the designer i talk to in Auss just doesnt look like an ESG person.

She says they have always nailed it from the get go.

That report high lighted that these orgs exist to pay themselves some money for Anthropology work they may have failed to get at UNI..

They did not want to to join the protest ships trying to stop japanese whaling.

[BlackPeter]

Not sure the glassons client base are thinking about ESG when they shop do they?

Just saying as the designer i talk to in Auss just doesnt look like an ESG person.

She says they have always nailed it from the get go.

That report high lighted that these orgs exist to pay themselves some money for Anthropology work they may have failed to get at UNI..

They did not want to to join the protest ships trying to stop japanese whaling.

According to Nielsen, 75% of Millennials are eco-conscious to the point of changing their buying habits to favor environmentally-friendly products. A Pew Research Center survey finds Millennials and Gen Z stand out for their high levels of engagement with the issue of climate change.

https://www.pewresearch.org/science/2021/05/26/gen-z-millennials-stand-out-for-climate-change-activism-social-media-engagement-with-issue/

https://www.nasdaq.com/articles/how-millennials-and-gen-z-are-driving-growth-behind-esg

Given that both Hallensteins and Glassons, but particularly Glassons are focussing on the younger generation I'd call it short sighted if they don't try to look ESG wise good.

As a share holder I would be concerned if they ignore the majority of their target customers. Always dangerous (and very often wrong) if oldies think that the young generation thinks exactly the same as the old ones do ;

ESG sceptics are much more likely people who have already the better part of their life behind them and don't want to be bothered to improve the life of future generations. Hey, they have already had a good live and their future life expectancy is shrinking. Why care about children and grand children ...?

[Waltzing]

Ok you may be right but honestly my designer friend just nods when ESG comes up and then it gets left at the door when she hits the ranks...

it seems it flys out the window when the cat walk is set up and the parade starts and the champagne flows...

Hector plains wants photo shoot negatives....

[Hectorplains]

Ok you may be right but honestly my designer friend just nods when ESG comes up and then it gets left at the door when she hits the ranks...

it seems it flys out the window when the cat walk is set up and the parade starts and the champagne flows...

Designer friend, eh.  Is this another AI thing?