PCap says: Although comp store sales improved during the half,...

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CASPERBAK

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23/08/17

10:38

Post #: 26686179
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Originally posted by pCap ↑

Interesting reaction to the results on opening.

Here's my quick take following the results call:

Negatives
- Although comp store sales improved during the half, they are down 3% in the first 6 weeks of FY18. It appears from the results call that this may be due to some promotional activity movements year on year, but they seem confident of a return to overall positive growth for the half. All will be revealed at the HY;
- Stock turns continue to slow. Mgt implied this will improve going forward due to merchandise changes, but jury still out on this.

Positives
- Mgt sounded upbeat that the merchandising problems have been addressed and are working, and should deliver positive comps for the half;
- Mgt also seemed confident that the H2 loss in 2017 won't be repeated in 2018
- International sourcing is set up, which should deliver longer term gains
- DC on track (although little detail given on this)
- H1 forecast includes cost of international sourcing setup which wont start delivering returns until H2
- Cash flow was a lot stronger than expected and they are in a net cash position, which is a fantastic outcome given the investment during the half.

If they deliver on what they have just announced, the s/p will be a lot higher in 12 months.

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PCap says: Although comp store sales improved during the half, they are down 3% in the first 6 weeks of FY18

But as per the media statement:
"FY2017 comparable store sales down 1.6% on prior year (H1: - 0.8%; H2: - 2.5%) "

So their Same Store Sales are dropping further with each period.

TRS Price at posting: $4.04 Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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PCap says: Although comp store sales improved during the half,...

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