Solid result considering the number of lockdowns which I think 16 were mentioned. The digital strategy is providing AX1 with the opportunity to continue to trade no matter what the situation is.
~ The focus on improving vertically owned brands is encouraging. The acquisition of Glue as well as store projections for both Glue and Style Runner are going to be huge drivers in increasing the customer base and revenue numbers of AUD$70M from vertical. Shoes + clothes for these outlets is a smart move. ~ Inventory levels look great. ~ 90 new stores that are trending ahead of budget indicates that the marketing and operational execution is on point (or the budgets were too conservative) ~ Dividend reduction would indicate management are cautious moving forward and want to be prepared and ready for any eventuality.
It's a BUY.
AX1 Price at posting:
$2.34 Sentiment: Buy Disclosure: Held
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