Ann: FY22 Full Year Results Presentation, page-4

Good points well made! They definitely won’t win most sexy company on the asx award, but that is why I like them. They just do their thing, have carved out a bit of a niche in baby and kids at a value level. Both discounters and kids clothes did well in the gfc and they have both. I believe they would do well in a recessionary environment.

Clearly they are well managed looking at how they have dealt with inventory, covid lockdowns and shipping costs in a tricky period that has derailed many retailers. They also make most of their own clothes in house.

As a mature company, they’re definitely not a growth stock in any sense of the word, but the market prices accordingly or even as tho a declining industry

They should have a significant boost without the missing covid days, as well as 4-5% of price inflation…

I imagine they will make it a focus to try and hammer revenues this year and try and get close to 700 mill after really getting on top of costs the last 2-3 years.

Only real growth avenues are through organic population growth with the covid baby boom, immigration picking up and a opening a few stores here and there… but that’s only the same as woolies, Coles etc at a much lower valuation.

At a likely dividend yield of over 10% for the next couple of years, it’s a pretty safe place to be IMO. I’ll just use any of allegro’s manoeuvring to pick up further shares on the cheap. bit annoyed I bought at 2.70 on the day of results tho…That was a lesson!