WHS - Warehouse Group

[Hectorplains]

There's a slide head up THE ROADMAP TO NET ZERO


hope that's not the profit guidance

Page 6 too.

That's ahead of the sacred "Our Integrated Ecosystem" on p13. 

"FY24 Outlook" finally pops up at...p30...although without actually bothering to give profit guidance. 

Priorities, eh

[Basil]

c) Nick would probably stand there pondering, if the Camel lifts the boy straight up does that mean this somehow fits into my vertically integrated ecosystem?

[Basil]

I lost pretty much total interest in the Warehouse when they decided to go down the Living Wage route in 2019. Well done that union. Around 600 redundancies a year later. Gee. What a surprise.

Thought I might try to make a positive contribution to this thread. But honesty only got to page 3 and I get the Gender Equality stats, the 100% Coal Burner Fleet and $4m raised for the community.

Well done to the warehouse. Raising all that cash, tax free for the community. And then I look at net profit $30m. Seriously - they would be better off in the charity game.

Well now we know the cool thing is that if you do some shopping at the WHS, with less than a net 1% margin on all sales, they basically are a charity + 1% so if you are buying on sale it's probably below their total cost including cost of doing business.  The other day I bought a 2 Terabyte USB drive for only $119 on sale down from $159, probably below cost.  It was certainly a lot cheaper than anywhere else.
We need to support this charity so it can continue to do its good work 

Nick reckons things are going to be better in FY24  https://www.nzherald.co.nz/business/markets-with-madison-retail-recession-costs-and-crime-crushing-profits/D7BAD5AFPJCYDCWBMCAIQHJMHQ/?lid=9b9lf1vy47fv&utm_source=newsletter&utm_medium=nzh_email&utm_campaign=News_Direct_Business_Headlines&uuid=ae2dd95d629344ca8119b12a0d7d7338

[Hectorplains]

Well now we know the cool thing is that if you do some shopping at the WHS, with less than a net 1% margin on all sales, they basically are a charity + 1% so if you are buying on sale it's probably below their total cost including cost of doing business.  The other day I bought a 2 Terabyte USB drive for only $119 on sale down from $159, probably below cost.  It was certainly a lot cheaper than anywhere else.
We need to support this charity so it can continue to do its good work 

Nick reckons things are going to be better in FY24  https://www.nzherald.co.nz/business/markets-with-madison-retail-recession-costs-and-crime-crushing-profits/D7BAD5AFPJCYDCWBMCAIQHJMHQ/?lid=9b9lf1vy47fv&utm_source=newsletter&utm_medium=nzh_email&utm_campaign=News_Direct_Business_Headlines&uuid=ae2dd95d629344ca8119b12a0d7d7338

3 'C' words, eh.  I can think of at least one other...No not that one! More, the timbre of Herald business reporting is...challenging.

Meanwhile Forber today gave the Warehouse result as "disappointing."  As in D for disappointing, if you like...

 

[Onemootpoint]

Well now we know the cool thing is that if you do some shopping at the WHS, with less than a net 1% margin on all sales, they basically are a charity + 1% so if you are buying on sale it's probably below their total cost including cost of doing business.  The other day I bought a 2 Terabyte USB drive for only $119 on sale down from $159, probably below cost.  It was certainly a lot cheaper than anywhere else.
We need to support this charity so it can continue to do its good work 

Nick reckons things are going to be better in FY24  https://www.nzherald.co.nz/business/markets-with-madison-retail-recession-costs-and-crime-crushing-profits/D7BAD5AFPJCYDCWBMCAIQHJMHQ/?lid=9b9lf1vy47fv&utm_source=newsletter&utm_medium=nzh_email&utm_campaign=News_Direct_Business_Headlines&uuid=ae2dd95d629344ca8119b12a0d7d7338

The Warehouse advertising toys from $1.
That's cheaper than the $2 stores (which should be $3 stores these days).

[Basil]

The Warehouse advertising toys from $1.
That's cheaper than the $2 stores (which should be $3 stores these days).

WOW ! if ESG is top of the agenda for shareholders they should be very proud of that charitable work.

In other news a happy ending to Weetbix-gate but only after Com-Com got involved https://www.nzherald.co.nz/business/weet-bixgate-sanitarium-backs-down-after-furore-with-the-warehouse/Q4R4IJDCAVADPKBEX6PZKG6X64/
Maybe its time to send the CEO and directors of that company off to a different Sanitarium for a while 

[Hectorplains]

WOW ! if ESG is top of the agenda for shareholders they should be very proud of that charitable work.

In other news a happy ending to Weetbix-gate but only after Com-Com got involved https://www.nzherald.co.nz/business/weet-bixgate-sanitarium-backs-down-after-furore-with-the-warehouse/Q4R4IJDCAVADPKBEX6PZKG6X64/
Maybe its time to send the CEO and directors of that company off to a different Sanitarium for a while 

"The Warehouse a few weeks ago accepted Sanitarium's offer of other "value price breakfast cereals" for its customers."  Naughty of narky Nick not to have disclosed that. 

[Basil]

Weetbix-Gate worked a treat for him eh, great smokescreen to take attention off their dreadful performance.
I see in that link I posted @ #319 Mr Disingenuous disclosed he'd curtailed 320 head office roles.
Breathtaking....gives a valuable insight into how bloated this company had become.

Interesting that K Mart are kicking some serious performance goals at the same time WHS performance crumbles.

[Hectorplains]

Part of The Warehouse strategy is stoking up online hate for Sanitarium. 

However; Sanitarium have folded, so maybe behaving like a slighted 13 year old school girl is the way forward in contract negotiations? 

[Basil]

Hmmm...interesting, thanks for sharing.

Not sure all the analysts will have crunched their numbers yet but at this point the consensus for FY24 is 12 cps and FY25 17 cps.  https://www.marketscreener.com/quote/stock/THE-WAREHOUSE-GROUP-LIMIT-6491364/finances/

Nobody in their right mind would think this is a growth company so if we apply a no growth PE of 7.5 (Ben Graham 8.5 but that's when the risk free rate is 4% and we're at close to 5.5% now), to FY25's numbers assuming that's some sort of new normal once we're through this cost of living crisis that suggests fair value of 7.5 x 17 = $1.27.

Obviously Mr Market thinks they can recover earnings more strongly in FY26 and beyond, but I'm strongly disinclined to agree with the present board and CEO.   I don't think there's any cohesive plan to stem the losses at Torpedo 7, Noel Leeming is likely to stay in the doldrums for a very long time as all the white and brownware bought during Covid lasts many years before it needs replacing and the Market continues to eat its head off with losses.

Meanwhile K Mark and Costco et al continue to expand and eat WHS lunch for them.
A friend says I should never hate on stocks and simply watch and wait for an opportunity, but I don't see any sign of one here in the foreseeable future.  Maybe it if tanked to under $1 where it arguably deserves to be...

[Minimoke]

Part of The Warehouse strategy is stoking up online hate for Sanitarium. 

However; Sanitarium have folded, so maybe behaving like a slighted 13 year old school girl is the way forward in contract negotiations? 

Having a strong vein of scottish blood flowing through me I'm quite content with the Pams 1.2kg Wheat Biscuits for $6.09 at pak n save. So warehouse aint out of the woods yet!

[winner (n)]

Nick buying more shares

Usually a bad sign ....share price seems to fall when he buys

Wasn't that long ago he bough Basil's shares at over 4 bucks lol

[Hectorplains]

Nick buying more shares

Usually a bad sign ....share price seems to fall when he buys

Wasn't that long ago he bough Basil's shares at over 4 bucks lol

Less than a weeks wages worth for him. 

[winner (n)]

That's telling them Nick ....go on get heavy with them

https://www.nzherald.co.nz/business/grocery-council-says-foodstuffs-hopeful-merger-has-been-talked-about-for-years/Z7WBNLZHB5GYFI4C7MPHWG22H4/?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Wednesday+8+November+2023

[Hectorplains]

Anchor tenants in the Mall but can't close out a deal to renew their lease?!  Poor old The Warehouse are not the right fit as neighbours for the luxury living set?