Risk is the escalating costs. From the last investor call -...

Risk is the escalating costs. From the last investor call - fully exposed to retail award moves (5% etc) + the extra superannuation.5%. And one third approx of leases are cpi linked. Essentially costs are somewhat fixed and rising - need to generate sales growth the same to keep up.

Fwiw I think that the cost of living crisis/change in consumer discretionary will look very different in different parts of Australia. In the mortgage belts of the big cities (esp sydney) with their giant mortgages and soaring electricity prices it’ll be severe. In rural and regional aus (inc WA, Tas, SA) it won’t hit nearly as bad. Unfortunately for us DSK generally holds outer suburban store footprint. However a look at where the new stores are opening seems to imply that they’re still seeing good locations in rural Australia. Christmas this year will be the big test to see if these stores can make moolah.