Sales actually look pretty alright IMO. $242m sales vs $240.5m consensus forecast. We all know that sales will recycle last year's massive number, so no surprise here.
COVID related & store closures cost ADH $30m - $36m in sales and $14m - $18m in EBIT.
EBIT looks low, margin impacted. We know the impact to EBIT was $14m - $18m. So if we normalise it, margin seems in line with last year.
Online sales is now 43% of the group sales.
ADH shares have actually held on pretty ok in recent market turbulence. Being a cheap & high yield stock, I think it will probably outperform the market. I don't think the market sell off has finished yet unfortunately, so big PE names will be under the guillotine first.
Seethroughs from DSK's annoucement since they are both run by Catalyst:
DSK sales improved post lockdown (due to Xmas gifting season) but in store sales were actually down, I reckon it is due to Omicron, which deter people from going to shopping centres => ADH probably faces the same issue.
DSK's inventories look alright. Sales/inventories = 4 times. ADH also said their inventories level is ok => I found some comfort here.
ADH Price at posting:
$3.81 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)