Ann: Retirement of Chairman, page-28

The elephant in the room is the $1.8bn lease liability. However, there was no real discussion on reduction of floor space, other than they've reduced/sublet 60,000sqm of space. No guidance on the impact to cash outflow. Also no mention on the size of rental reductions/waivers in that call.

IIRC, they had just over 1,100,000sqm of GLA at the end of 1H20. So they've reduced about 5.5%. Given these are mostly CBD locations, one could assume that the rental drop is greater than 5.5%.

I still have to place some assumptions around lease costs in future and their ability/timeline to reduce space. But it would have been nice to discuss this further.


The other part I was interested in was on margins online vs instore. Nigel started discussing this around 4pm, but I had to drop off the call. Will have to listen to the recording once it's available on the website.

In any case, the lack of an outlook statement is telling.