Hi all, I am enjoying the discussion about this stock.I too am...

Hi all, I am enjoying the discussion about this stock.

I too am looking forward toseeing how the La Senza rollout progresses. If they can position this store well and make good margins then it will add a boost to the share price.

The current environment is actually an ideal time to be setting up stores... if a store can survive in this environment when (if) the economy turns around the returns will be fabulous. If a store can't survive I have no doubt they will be closed down.

SFH has hardly any debt.. and generated a fair amount of cash last FY. The proven focus on the cash flow provides this management with an extra tool which I don't think many other retailers bothered about for the last few years.


Its fairly obvious that retail will struggle through the next year or two. I think SFH's experience of two years ago has trimmed away all the fat and they might be in a better position relative to their competitors to thrive in this environment.

Regarding online sales... this is definitely an issue for the tech savvy consumer, but I don't think this is SFH's core demographic. Over time they will need to think of an alternative to this but SFH probably have 5 years to adjust.

Additionally I don't think SFH management are skilled enough in IT or building all the backend systems that a strong online retail requires.

One view is that online retail will be dominated by players that have zero investment in physical properties. Ruslan Kogan is one example I am thinking of here.

I see this as one of the more 'interesting' retailers. I am hoping their focus on cash flow will support the share price through the next few years.