WHS - Warehouse Group

[LoungeLizard]

Surprised they are paying a dividend considering what shocker of a result that is. How on earth does Nick keep his job? - they poured millions into TheMarket and now he just shrugs his shoulders and says "Oh, well, time to move on."  What's next on the chopping block - Noel Leeming?

[BlackPeter]

OK - I get it that the results are depressing and the outlook is quite unsettled. However, a bit tasteless to present on the slides for the financials (slide 16) as well as for the outlook (slide 26) happily laughing people, isn't it? A bit more somber photos might have been appropriate, unless the pictures are provided courtesy of the competition:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/428233/415207.pdf

On a bit more uplifting note - good to see the turnover for groceries going up (to 20%), though not quite sure, whether this might be just a function of the increased footprint.

Sensible to see the market and Torpedo 7 as loss leaders go, but not sure how anybody could run down Torpedo 7 to basically naught value. Wondering, whether they let the right people go? What about the captain, who caused the problems in the first place?

[entrep]

3 step plan to Warehouse recovery:

1. Fire the CEO.
2. Sell Torpedo7.
3. Shutdown TheMarket.

Only one left and this might become a buy.

What a completely moronic CEO to have let TheMarket debacle carry on this long. We are anonymous posters on some forums who could tell it was a dud... this guy has all the data and still kept it running. What a joke.

[Basil]

Hey Basil ...you nagging and Nick finally listened

For s second there I thought there was good news he had resigned.  He should, the market has been a complete disaster for WHS, has burned through tens and tens of millions and it was all his idea.
The appointment of Tony Carter to the board in my opinion gives no comfort whatsoever.
Presentation here. Only very briefly skimmed over by me at this stage but I have noted the outlook for FY24 on page 28 which makes for sober reading.  http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/428233/415207.pdf

[winner (n)]

The word ecosystem seems to have been dropped from their vocabulary

[winner (n)]

For s second there I thought there was good news he had resigned.  He should, the market has been a complete disaster for WHS, has burned through tens and tens of millions and it was all his idea.
The appointment of Tony Carter to the board in my opinion gives no comfort whatsoever.
Presentation here. Only very briefly skimmed over by me at this stage but I have noted the outlook for FY24 on page 28 which makes for sober reading.  http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/428233/415207.pdf

Another abandoned baby up for fostering?

[Basil]

Not for me mate.  Too many diapers to change on the abandoned babies I'm already fostering.
Not keen on opening an orphanage for abandoned babies from the NZX as I think I'd get overrun with numbers lol

[winner (n)]

Clare Capital did this interesting piece on Warehouse

A good and bad acquisition ...

The sale of Torpedo7 was recently announced for $1. This report examines Torpedo7 and Noel Leeming. Both companies were acquired by The Warehouse Group at a similar time for a similar price and resulted in quite different outcomes.

Noel Leeming (purchased for $73m) has achieved top-line growth, ongoing profitability, and a substantial increase in the estimated market value of the business. Torpedo7 (purchased for $53m) hasn't achieved the scale that was originally envisaged, and it continues to drain cash. The Warehouse's business model is low margin at scale – and Torpedo7 doesn't fit with this.


More detail
https://assets-global.website-files.com/63438c7fda79c9cd22c86dc8/65fb707bc7bab0a268165018_Clare%20Capital%20Tech%20Insights%20322%20-%20A%20Tale%20of%20Two%20Acquisitions%20-%2020240318.pdf

[winner (n)]

Nick having another whinge

Jeez Govt imposed price controls .....like he's determined to return NZ to the worst of the post-war era.

Really wants to lower prices he pays ...needs to 'deserve' the big discounts

Warehouse Group boss calls for grocery price controls

https://www.thepost.co.nz/business/350229324/warehouse-group-boss-calls-grocery-price-controls

[winner (n)]

JB Hi Fi just reported that NZ sales for Jan/Mar were up 18.3% on last year .......comparable were +2.9% with other growth from new stores

Hard to imagine Noel Leeming doing these sort of numbers

WHS apparently quarter sales tomorrow ...probably going to be a bit dismal but Nick will spin a good story

[winner (n)]

Q3 Update even more dismal than I envisaged

Things seem to be getting worse quarter to quarter

Fancy blaming floods and Gabrielle ...desperation

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/430882/418245.pdf

[Hectorplains]

Q3 Update even more dismal than I envisaged

Things seem to be getting worse quarter to quarter

Fancy blaming floods and Gabrielle ...desperation

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WHS/430882/418245.pdf

Yup, that's an absolute stinker.  It'd be a surprise only to Nick that no one wanted to buy the Market    The Warehouse is just not very good at selling stuff, including failed online omnichannels.  Time to go, Nick?     

[LoungeLizard]

The Warehouse seems to be in systemic decline where no part of the organisation is able to generate profits. Not when both sales volume and margins seem to be going down every quarter. The Board seem paralysed and Nick is way beyond his use-by-date. Basically un-investable at this point, and if dividends are suspended - as they may have to be - then sub $1 is on the cards.

[Basil]

UPDATE ON THEMARKET.COM
In March 2024, the Group shared our intention to sell or close TheMarket.com. Subsequently we have
engaged with a number of interested parties, however we now confirm TheMarket.com will close by
late June 2024

About $100m of shareholders funds down the toilet.  Nick is an absolute "legend"

Agree its uninvestable and in due course an exit from the NZX50 is almost certain.  Wonder how Nick feels about the shares he bought off me at $4.11 now ?

Surely this is worth less than $1.  We need a FBU style clean out now.  Nick and Joan are well and truly past their use by date and completely clueless how to stem the ongoing decline.

[Basil]

WHS closed at $1.20 less than half the $2.50 price they floated at in 1994, 30 years ago !