Latest / What the Flux / JB Hi-Fi's beats expectations | Temple & Webster skyrockets 26% | Economic slowdown impacts Seek

Transcript

JB Hi-Fi's beats expectations | Temple & Webster skyrockets 26% | Economic slowdown impacts Seek · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Wednesday, the fourteenth
• 0:09
  Speaker 2: of August.
• 0:10
  Speaker 3: Juzzy boy, are you smelling that a little bit of
• 0:12
  Speaker 3: confidence coming back to consumers?
• 0:14
  Speaker 1: Get this one.
• 0:15
  Speaker 3: The Consumer Sentiment Index run by Westpac and the Melbourne
• 0:18
  Speaker 3: Institute jumped in August by two point eight percent. And
• 0:22
  Speaker 3: this might just be a sign that consumers believe the
• 0:25
  Speaker 3: worst is behind us. Believe people, Fox, Sam, listen to this.
• 0:28
  Speaker 4: Meanwhile, other capitals like Perth and Brisbane are on a
• 0:31
  Speaker 4: little bit of a rocket path in terms of the
• 0:34
  Speaker 4: current cycle. There is way too much demand versus the
• 0:36
  Speaker 4: amount of homes available at the moment. Smaller markets so
• 0:39
  Speaker 4: Brisbane and Perth are really driving the national growth.
• 0:42
  Speaker 2: That's the voice of Freedom Sied from Confidence Finance talking
• 0:45
  Speaker 2: everything you need to know about property investing a man.
• 0:48
  Speaker 2: There are more than two million property investors in Australia
• 0:51
  Speaker 2: and if your next investment goal is to buy a property,
• 0:53
  Speaker 2: then this is the course that you need to know.
• 0:55
  Speaker 2: To make sure you check out the Academy this month
• 0:56
  Speaker 2: for all the ins and outs.
• 0:58
  Speaker 3: Three non confidential story today, Jazi boy, let's do it
• 1:01
  Speaker 3: for our first JB Highi has seen its full year
• 1:04
  Speaker 3: profits fall over sixteen percent, and investors have piled on
• 1:08
  Speaker 3: in a good way, sending its shares up more than
• 1:10
  Speaker 3: ten percent.
• 1:11
  Speaker 2: Did not think he could pile on in a good way,
• 1:13
  Speaker 2: but there you go, so tell me more.
• 1:14
  Speaker 3: Jazi Boy Jbhighi is obviously the Aussie electronicsor retailer that's
• 1:17
  Speaker 3: been around since nineteen seventy four.
• 1:20
  Speaker 2: Back in the day, it was selling twenty inch TVs
• 1:22
  Speaker 2: and cassettes. Nowadays we're talking everything from iPhone, smart home devices,
• 1:25
  Speaker 2: washing machines.
• 1:26
  Speaker 1: And Jazi Boy.
• 1:27
  Speaker 3: It also owns the Good Guys, which came under a
• 1:29
  Speaker 3: bit of scrutiny recently for miss leading shoppers on its promotions.
• 1:32
  Speaker 2: I remember that so be man Jabie Highfi kicked off
• 1:35
  Speaker 2: the earning season with its revenue down zero point four percent.
• 1:38
  Speaker 1: I don't reckon.
• 1:38
  Speaker 2: That's not bad, but then a warant of a sixteen
• 1:40
  Speaker 2: percent slide in its.
• 1:41
  Speaker 1: Profit Jaikarun is not great.
• 1:43
  Speaker 2: But here's the thing they man jab high Fis share
• 1:44
  Speaker 2: price shot up more than ten percent after this news.
• 1:47
  Speaker 3: The reason you ask well, Over the past few weeks,
• 1:50
  Speaker 3: other retailers have spooked investors like it was Halloween.
• 1:54
  Speaker 2: Yeah, a few weeks ago, my warant of heavy, heavy discounting,
• 1:57
  Speaker 2: which would significantly hurt their earnings, and it was assumed
• 1:59
  Speaker 2: this it would also apply across the retail market.
• 2:02
  Speaker 3: So when Jbhi Fi only saw a sixteen percent drop
• 2:04
  Speaker 3: in profit, it was like hearing your phone survived a
• 2:07
  Speaker 3: fall without a scratch.
• 2:08
  Speaker 2: A good feeling less bad suddenly became the new good,
• 2:12
  Speaker 2: and Jbhigh Fi shares took off. So be man, tell
• 2:14
  Speaker 2: me what is the key learning here?
• 2:15
  Speaker 3: The key to a successful reporting season lies in not
• 2:19
  Speaker 3: just delivering strong numbers, but doing better than expectation.
• 2:23
  Speaker 2: You see, investors usually pricing the expectations of a company's
• 2:26
  Speaker 2: performance ahead of the earnings report.
• 2:28
  Speaker 3: That means the company's share price will already reflect that expectation.
• 2:31
  Speaker 2: And the man last week my warned that its profit
• 2:34
  Speaker 2: will drop thirty percent because it's been forced to discount
• 2:36
  Speaker 2: it stock.
• 2:36
  Speaker 3: So it was assumed that many other retailers like JB
• 2:40
  Speaker 3: High were in the same boat.
• 2:41
  Speaker 2: So the fact that Jabi Hyphi's numbers were less bad
• 2:43
  Speaker 2: than expected actually led to this price rally.
• 2:46
  Speaker 3: Chuck on top of out that special special dividend, and
• 2:49
  Speaker 3: Jessie boy, you've got a recipe for success, so be man.
• 2:51
  Speaker 2: In essence, jbhigh Fi managed to outperform the low expectation
• 2:55
  Speaker 2: set by analysts and investors, and that.
• 2:57
  Speaker 3: Has created a sense of relief and also optimism in
• 3:00
  Speaker 3: the market.
• 3:00
  Speaker 2: For our second story, templeum Webster has nearly hit five
• 3:03
  Speaker 2: hundred million bucks in annual sales and at share price
• 3:06
  Speaker 2: skyrocketed twenty six percent.
• 3:08
  Speaker 3: So retail is most certainly not dead well and truly alive,
• 3:12
  Speaker 3: just redecorated this time.
• 3:13
  Speaker 1: So what's going on here?
• 3:14
  Speaker 2: Okay, so we know templeo WebStar, as the Aussie online
• 3:16
  Speaker 2: furniture store started back in twenty eleven.
• 3:18
  Speaker 3: Your dream sheelf is only a few clicks and many
• 3:20
  Speaker 3: hours of assembly away.
• 3:22
  Speaker 2: So true, And in twenty sixteen Temple Webster listed on
• 3:25
  Speaker 2: the ASX with one of the worst floats of the year.
• 3:27
  Speaker 2: It lost ninety percent of a share value in just
• 3:29
  Speaker 2: twelve months.
• 3:30
  Speaker 1: Certainly doesn't sound ideal to me, Josie boy No.
• 3:32
  Speaker 2: But then during COVID, when online shopping was the range,
• 3:34
  Speaker 2: Temple and WebStar became the rage ideal And now Temple
• 3:38
  Speaker 2: on websits released its results of the past twelve months.
• 3:41
  Speaker 3: Revenue up twenty six percent to four hundred and ninety
• 3:44
  Speaker 3: eight million dollars.
• 3:45
  Speaker 2: It's pretty impressive considering the overall retail market is down
• 3:48
  Speaker 2: around four percent.
• 3:50
  Speaker 3: And guess what it's first few weeks of FI twenty
• 3:52
  Speaker 3: five revenue also up twenty six percent.
• 3:54
  Speaker 2: Next minute at share price jump twenty six percent.
• 3:57
  Speaker 1: A lot of twenty six is floating around here and.
• 4:00
  Speaker 2: A man templan Webs's big hairy goal is to hit
• 4:02
  Speaker 2: one billion dollars in revenue in the next three to
• 4:04
  Speaker 2: five years, and part.
• 4:05
  Speaker 3: Of its play is to continue growing its number of
• 4:08
  Speaker 3: orders from repeat customers.
• 4:10
  Speaker 2: So what is the key learning here?
• 4:11
  Speaker 3: Repeat customers are the backbone of sustainable growth for any
• 4:14
  Speaker 3: business you see templo Webster had over one point one
• 4:17
  Speaker 3: million customers in FI twenty.
• 4:18
  Speaker 2: Four, of which fifty seven percent are repeat customers, and
• 4:21
  Speaker 2: that's a jump from fifty four percent in FI twenty three.
• 4:24
  Speaker 3: Which does avoid temple and Webster believes it over time
• 4:26
  Speaker 3: they can make eighty percent of their purchases from repeat customers.
• 4:29
  Speaker 2: And repeat customers aren't just a percentage increase on a page.
• 4:32
  Speaker 1: No no no no no no no no no.
• 4:33
  Speaker 3: It's a major indicator of customer satisfaction and also loyalty.
• 4:37
  Speaker 2: In fact, the a man. Depending on what industry you're in,
• 4:39
  Speaker 2: acquiring a new customer is anywhere between five twenty five
• 4:42
  Speaker 2: times more expensive than retaining an existing one.
• 4:45
  Speaker 3: That one is according to a humble friends at the
• 4:47
  Speaker 3: Harvard Business Review.
• 4:48
  Speaker 2: So Templo Webster and its investors kicking back on their
• 4:51
  Speaker 2: plush velvets, sofar knowing that their repeat customers are the
• 4:54
  Speaker 2: sturdy legs that keep their profitability standing tall.
• 4:57
  Speaker 3: For our third and final story, seeks she dropped over
• 5:00
  Speaker 3: seven percent after it announced earnings for the twenty twenty
• 5:03
  Speaker 3: four financial year fell by thirteen percent.
• 5:06
  Speaker 2: The job boards are sounding a little bit like crickets
• 5:08
  Speaker 2: around here, be Man, So what's the story here?
• 5:10
  Speaker 1: Well.
• 5:10
  Speaker 3: Seek is the online employment marketplace that was started in
• 5:13
  Speaker 3: nineteen ninety seven.
• 5:15
  Speaker 2: It took old school paper resumes and newspaper job ads
• 5:17
  Speaker 2: and brought them together by the magic of the internet, and.
• 5:21
  Speaker 3: Six got its operation set up across Australia and New Zealand, China,
• 5:24
  Speaker 3: Hong Kong, Singapore, just to name a few.
• 5:26
  Speaker 1: But there's more.
• 5:26
  Speaker 2: But now, be Man six shares dropped over seven percent
• 5:29
  Speaker 2: off the back of its annual earnings update.
• 5:31
  Speaker 3: Now, if these results were a performance review, they'd be
• 5:35
  Speaker 3: given the old maybe it's time for a change of
• 5:37
  Speaker 3: scenery speech.
• 5:38
  Speaker 2: We're talking a seventeen percent drop in sales revenue.
• 5:41
  Speaker 1: We're talking a one hundred and one million dollar loss.
• 5:44
  Speaker 2: And we're talking job ads on six recruitment platform dipping
• 5:47
  Speaker 2: by twenty percent. AKA were Seek earns the majority of
• 5:49
  Speaker 2: its income. But be man, it seems like this not
• 5:52
  Speaker 2: so great performance. It may not be entirely SEEKS doing YEP.
• 5:55
  Speaker 3: It may have more to do with macroeconomic conditions than
• 5:58
  Speaker 3: SEEKS operating decisions.
• 5:59
  Speaker 2: So what is the key learning here?
• 6:01
  Speaker 3: When the economy quakes, recruitment businesses and employment businesses they
• 6:05
  Speaker 3: feel the aftershocks.
• 6:06
  Speaker 2: You see, the performance of jobs platforms like Seek is
• 6:09
  Speaker 2: directly linked to the health of the labor market.
• 6:11
  Speaker 1: YEP.
• 6:12
  Speaker 3: When unemployment is low, there are more jobs being advertised,
• 6:15
  Speaker 3: so more opportunities for Seek to make money.
• 6:17
  Speaker 2: Now, at the moment, the unemployment rate you're sitting at
• 6:19
  Speaker 2: four point one percent, which is a jump from twelve
• 6:22
  Speaker 2: months ago when it was just three point six percent.
• 6:24
  Speaker 4: I e.
• 6:24
  Speaker 1: Things have certainly gotten worse.
• 6:26
  Speaker 2: And when economies slow down, companies tend to reduce or freeze.
• 6:29
  Speaker 1: Hiring and there are fewer jobs being advertised.
• 6:32
  Speaker 2: As a result, a less revenue for employment companies like
• 6:34
  Speaker 2: C plus AM. Did you know the property market has
• 6:36
  Speaker 2: increased by six point eight percent year on year over
• 6:39
  Speaker 2: the last thirty years. It is a pretty juicy return
• 6:42
  Speaker 2: and we lay out how you can get into the
• 6:43
  Speaker 2: property market, whether it's right for you, and how to
• 6:45
  Speaker 2: build a strategy around it in the Plux Academy.
• 6:47
  Speaker 1: This month All in one Academy, All.
• 6:50
  Speaker 2: In one Academy, so make sure you download the app
• 6:52
  Speaker 2: and check it out to get ahead.
• 6:53
  Speaker 1: Thanks for listening and we'll see you on Friday.