Ann: Business Update, page-109

I wouldn't have said their sales were "record" but the announcement did identify a record promotional period. The significance of the KMD result is in my view it is disconnected to the share price. Furthermore I believe this is a trend across most consumer discretionary stocks including AX1.

KMD highlighted Q4 result with profitability above pre covid levels for a very good reason- It was perhaps the only qtr where the business was able to trade in any semblance of what would be a normal (no lockdown/no COVD impacted) operating environment- again this applies to all retail.

AX1 has already updated the market (April 2022) that the business continues to focus on a full price full margin strategy which I think will see them deliver a much better than anticipated FY result come August 19th.

Overnight US retail data has again confounded analysts with sales for June growing by 1%. Whilst the figures aren't adjusted for prices, the better than expected results indicate that consumer demand is still holding up despite the rising interest rate environment. This latest data is in lockstep with Australian data and indicates that with full employment, record household savings and despite low consumer sentiment, people haven't stopped spending to the extent that media outlets like to portray.

Could it be that media over-egg the inflation/rising interest rate story and could it be that AX1 has been way oversold....A better indicator of the state of the AX1 share price is the recent on market $6M purchase of shares by one Brett Blundy.