Pinned straw:
Retailer $ADH released FY24 results today;
Summary
Quick observations: given the top line decline, the NPAT decline of -17.8% (probably more like -22-23% on a comparable basis) is not too bad.
This reflects their "cost out" focus to manage increases in CODB. I think this is the first retailer where I've seen CODB actually decline (on a comparable basis).
Interestingly, from a quick scan of the release and presentation I cannot see any references to LFL sales comparisons. Given total sales went back -6.6% on a comparable basis and net new stores were opened, I'm assuming it's not a pretty number.
One ray of light, in that Mocka now seems to be making progress again. Another, is that the new NDC is delivering benefits, after a shakey start.
OK result - not the highest quality retailer.
Disc: Not held (formerly held, but I exited (at a bad time!) and reallocated to $NCK and $BRG)
Yeah, looks like they are doing well to manage costs and margins in a tough environment. As well as transitioning to a new DC and reducing debt.
The reality is that sales have more or less gone nowhere for a long time, across all segments:
Adairs:
Focus on furniture:
Mocka:
And so far in FY25 there still isn't much sign of life with group sales down 0.4% in the first 8 weeks. I'm with you @mikebrisy --there are better retailers out there.
The PE is 9, yield is 6.9% -- which seems cheap -- and maybe is if they can return to growth. But there's no sign of that, and the broader economic outlook isn't great.
Not held.