the $100m forecast figure of the profit for this FY is After tax so dont' discount it by 30%....they made 85M first half this year after tax...
now they are not opening the six new stores before the financial year end...! they will likely open them some time before christmas.....so there is another $85-100M after tax profit they can use....keep in mind that the first half was extraordinarily tough for all retailers with the euro crisis.....so they should be able to beat the $85m figure first half next FY....
Also they would be spending CASH FLOW not PROFIT...they racked up 150m in free cash flow in the first half....so just that can comfortably cover this spend..
Besides....they will get suppliers to help fund a portion of this...
DJS Price at posting:
$2.40 Sentiment: LT Buy Disclosure: Held
