Inventories are looming as a major issue. In general terms the...

Inventories are looming as a major issue. In general terms the shorter the turnover period the more profitable the business. Turnover has consistently hovered in the 80 to 100 days average and under the new management reached a low of 65 days in the December 2017 half. Subsequent to the Specialty Group Assets purchase from City Chic the time taken to turn stock over has doubled. This trend was developing prior to the bush fires which aren't reflected in the chart below. One can only assume an overhang is building which will require heavy discounting +/- impairments.

This will be an important metric to look at in the half yearly report and upcoming guidance.