Like you I came to the conclusion that the 2022 FY result wasn't...

Like you I came to the conclusion that the 2022 FY result wasn't too bad.

There are certainly some things to like about this company.
- I suspect that a lot of sales are non discretionary, socks and jocks type sales and I notice that over 50% of sales are baby and infant clothing which I suspect are purchases that customers don't reduce much, regardless of how tough things get. Equally if the economy gets tougher, they may well pick up more sales from now less affluent people going down market to buy.
- It has no debt
- The return on equity is amazingly high. For 2022 it was 56% ( after tax) . As they aren't buying their growth by acquisition, they just need to buy a few shop fittings and a bit more inventory when setting up a new shop.
- Brett Blundy, who is arguably one of the best retailers in Australia, is on the share register with a substantial holding.

That said, the negatives are:
- You have got a private equity mob as the biggest shareholder who seem to want to get out, so that means that there is a potential overhang of shares coming onto the market, which will depress the price until they have exited.
- It's hard to see any significant growth. They are already pretty well represented in Aus and NZ and I don't see them expanding elsewhere. 2022 is a good example, 6 stores opened by 9 closed. I see they are opening 11 in 2023, but I don't really see any real runway.

As a solid dividend producer, it probably has a place in an income portfolio, I am thinking.

DYOR.