Delved deep into the results and it all looks pretty rosy. Nice...

Delved deep into the results and it all looks pretty rosy. Nice to see a dividend policy (50% of profits) announced. Bit of a rollercoaster year for them though....

H1 had sales up 11.5% whilst H2 had sales down 7.4%. Sounds pretty alarming but cost of sales actually shrank 8.1% in the second half primarily I suspect due to a better exchange rate and more direct sourcing. Seems they had hedging of $US at 74cps in H1 vs 81 cps in H2 providing most of the difference. Looking forward they have hedging of $US 88cps for H1 of the FY11 year. So, I suspect cost of sales is set to shrink further despite the price of cotton soaring. More importantly the first half is when they do most of their business so there is a good chance of a bumper profit.....unless they cede the gains to the customer as happened in H2 of this year. Still, it's a good position to be in.

Not sure how the lingerie business will go for them but I guess it's an avenue of growth. 10 lingerie stores and 50 other stores this year and then 90 more lingerie stores over the following two years to be added to the 837 stores they have now.

Can't see FY11 profit being any lower than this year, just a matter of how much higher will it be.