HVN +4.43%: a strong day for Gerry’s retailer, the half-year report impressed against the low expectations. Revenue was down around 8% to $2.15b, however this was in line with consensus. Margins were better than feared though with Profit Before tax (PBT) of $289m, a 12% beat to expectations. The result signals a decent turnaround in the 2Q after a soft start to the year, and momentum has continued into the new year with Australian franchise sales running above pcp. There was a ~6% short position heading into the result, the position getting squeezed higher today though it is a surprise the stock wasn’t up more in the session given the beat.
MM is bullish HVN
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