Sectors: Consumer Goods
JBH was the best performing retailer on the main board yesterday rallying +1.6% i.e. if people are enthusiastically pre-ordering the iPhone 16 it’s a great read-through for most of JBH’s inventory.
As anyone that does school pick-up can attest, a big consumer shift has been the explosion of activewear, sports kit, as a form of everyday attire –black leggings are now a fashion statement! This now has a name, Athleisure and Lululemon is doing particularly well in this space. At their Q2 earnings report last week they reported net revenue up 29% to $1.87 billion which was well ahead of guidance and comparable sales increased 25% with an 18% increase…
HVN 2.31%: The retailer was weaker today following their FY22 results that were ahead of consensus in total sales and profit, but a little softer in some of the other measures. Net profit of $811.5m was down 3.6% y/y against consensus estimate for $700.1m while the FY dividend of 37.5c was a touch ahead of the 37c expected (17.5c for the 2H). While FY22 earnings were down on FY21, they said the start of fiscal 2023 has seen “solid sales results”.
Lastly moving onto pub and bottle shop owner EDV who was smacked earlier in the week after delivering a mixed bag in its FY22 report – their hotel division is travelling well while their retail business is finding the road a bit tougher i.e. the impact of the rising cost of living has not yet occurred. The company guided to a tough 1H23 with additional…
BRG -0.09%: Mostly an inline result across key metrics, profit up 16% was good with the Americas strong and getting better in the 2H, but weakness elsewhere. They do have an elevated inventory position that we knew about, although it does seem particularly high. They stressed that their products are not seasonal and will not need to be discounted in future. A solid update nonetheless but a few moving parts here ATM.
EDV -12.33%: The pub and bottle shop owner was hit today on their FY22 result that painted a mixed picture, their hotel’s division doing well while their retail business is a bit tougher as the reopening tailwinds are coming through more than expected i.e. more people getting out and about while the return of buying drinks and sitting at home due to rising…
JBH –0.99%: Had pre-guided this result so it was all known given their recent upgrade. The conference call provided some more insight into a few talking points in retail land:
JBH has suffered with inventory issues and of course a soft consumer but when we see inflation go back into its box and the papers stop discussing rate hikes at nauseam the consumer will regain confidence and start spending, we like JBH for sector exposure along with Nick Scali (NCK) as a slightly more speculative play.
KGN +50.16%: shares in eCommerce business Kogan.com surged to 3-month highs today on the back of better-than-expected performance in the business. Sales for FY22 are expected to come in marginally above the prior year, beating out expectations of a fall from the COVID-supported growth of FY21. While sales are up, EBTIDA is expected to fall to…
JBH reported a stellar result yesterday but investors remain very wary of the Australian consumer as interest rates rise and soaring inflation sends the cost of almost everything ever higher thus reducing the disposable cash in people’s pockets i.e. discretionary spending, this has been reflected by consumer confidence slipping back towards GFC levels.
