@minegoat The problem moving forward will be how much of the...

@minegoat The problem moving forward will be how much of the 49.5% reduction in profit margins will be retained to keep sales/turnover up and how long they are willing/need to keep lower prices. Management increased sales initiatives but decreased profitability and these conditions could last at least another 6-12 months given the state of current interest rates and delayed effects. Could potentially send them into negative NPAT territory given they went from 19.5 mill to 9.9 mill over the FY. At this rate, the next 12 months could see them pretty much at break even.

While they managed to minimise lost sales, even with their incentives, conditions have since worsened, which shows the short term future of the business health. Question is how much more can they improve and more importantly how will this be achieved?

"Since the June promotion ended, comparable store sales have been negative 9.1% (cycling positive 16.1% for the same period in FY23)."

That's a swing of 25% to the red and pretty sure that signals tougher times ahead and that the worst is not yet seen given the economic conditions.

Not much I can see to like at this point and pretty sure the market will price accordingly tomorrow. These figures still don't include "employee equity incentive expenses and significant costs associated with business transformation projects"

Happy to hear others thoughts...