Lovisa and Adairs arent comparable. Lovisa are much more vertically integrated and have a tiny store footprint, can have significantly more stores and are expanding into asia. They also have significant repeat customers.
You need to look to similar companies like TPW, NCK, HVY etc
Currently NCK is hitting it out the park, they have a really good system in place and are growing well.
I think in this space ADH fairs well, TPW and NCK take a lot of attention away, ADH has consistent growth and lots of potential for growth locations to hit that $1b revenue target. I think TPW shine is waning now, they arent showing the ability to transfer the revenue growth to the bottom line yet, which is concerning to investors.
If ADH can pull close to 30m NPAT for H1 this year with revenue on target, they are very well placed to shoot the lights out - but it will be a tough ask. 2023 is going to be a very tough year and ADH do have a few headwinds they need to sort out.
I think the SP right now is very fair considering the risks - theres upside to be had, but with debt, the NDC issues earlier in the year and 2023 being tough, there are a lot of headwinds.
ADH Price at posting:
$2.19 Sentiment: Hold Disclosure: Held
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