Exactly right. Same logic applies to all the discretionary retailers basically. Already seeing a negative 14% LFL sales comp in first 7 weeks Jul-Aug, although that's obviously been heavily lockdown impacted, much more so than this time last year. Pre-lockdown May-Jun was actually holding steady on a very elevated +27% period last year.
Overall a solid set of results. They're stocked up on inventory so can capitalise on any post-lockdown boom if that eventuates. Hopefully that will coincide with the peak Xmas/Summer selling period. No easing of supply chain issues, if anything they're getting worse with lockdowns in Asian manufacturing countries. They continue to bet on bricks & mortar with an acceleration of the store rollout and refurb program with commensurate uptick in capex. The balance sheet remains conservative in what are clearly uncertain times. They did mention the potential to look at capital management (i.e. buyback or dividend increase) once we get past the covid volatility.
SUL Price at posting:
$13.05 Sentiment: None Disclosure: Held
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