Everyone keeps talking about no earnings growth. However, by buying back 10% of the company last year they effectively created 10% earnings growth.
And, have you considered that part of their competitive advantage is that their competition (WOW sight&sound and Dick Smith etc) are falling by the way side. ie The strongest will survive ala Charles Darwin. In this environment with the structural changes everyone knows about, who is going to have the guts to take them on at the shop front level. I dislike shopping, but whenever I go to my local Westfields, it is always full and I struggle to get a car park. Despite headwinds in our economy, the shops are always full of people buying stuff.
Their online sales grew 87% in the last period, that tells me they have taken steps to address the threat of online competition. Perhaps their challenge is to improve their offering in online further.
JBH Price at posting:
$10.42 Sentiment: LT Buy Disclosure: Held
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