DSH - DSHE Holdings

[System]

Dick Smith operates 359 physical stores, providing it with the largest number of consumer electronics stores in Australia and New Zealand. Dick Smith's physical store network consists of, in Australia, 267 Dick Smith branded stores, 30 David Jones Electronics Powered by Dick Smith stores and one Move store concept, and in New Zealand, 61 Dick Smith branded stores.

http://dicksmithholdings.com.au/investor-centre/

It is anticipated that Dick Smith Holdings Limited (DSH) will list on the ASX on December 2nd, 2013.

 

[chief71]

Re: DSH - Dick Smith Holdings

Dick Smith operates 359 physical stores, providing it with the largest number of consumer electronics stores in Australia and New Zealand. Dick Smith's physical store network consists of, in Australia, 267 Dick Smith branded stores, 30 David Jones Electronics Powered by Dick Smith stores and one Move store concept, and in New Zealand, 61 Dick Smith branded stores.

http://dicksmithholdings.com.au/investor-centre/

It is anticipated that Dick Smith Holdings Limited (DSH) will list on the ASX on December 2nd, 2013.

IMO you would have to have a death wish to invest in this........a lower quality version of the Myer float

 

[Craton]

Re: DSH - Dick Smith Holdings

Agree with chief71.

Just my take from the side lines but after WOW sucking the guts out of DSE for decades then flicking it off (to a private mob I believe) when the biz became a bit of a lead balloon, I smell a rat.

Still, once floated any number of M&A scenarios could ensue, HVN and JBH come to mind. Whatever, the current owners will pocket the fruit and good luck if one can stag the float.

 

[notting]

Re: DSH - Dick Smith Holdings

Who the hell would buy it?
I can't wait to see who the major steak holders would be.
Look out for what ever else their in and look to get short.

 

[Smurf1976]

Re: DSH - Dick Smith Holdings

DSH (or DSE as most would refer to it in any context other than the stock) was slowly but surely killed off by Woolworths from the early 1990's onward.

It used to be an electronics store as such, then they turned it into a generic retailer that just sells consumer goods which need batteries or have a cord attached. At that point it became a direct competitor to every other store selling the same items (of which there are plenty). Meanwhile Jaycar replaced DSE as the "real" major electronics store that actually sells electronics.

It's a classic example of something which practically every technical person I've met laments. Non-technical managers take something that works just fine, try to squeeze a few extra $ out of it, and end up ruining it. Then they move on to their next target, leaving the mess that remains for someone else to fix (or more commonly, shut down altogether).

I don't see where the company can really go now in terms of business strategy. The original business model is so far gone as to be virtually impossible to resurrect whilst the current business competes against everyone from online sellers to Kmart to JB Hi-Fi to Harvey Norman - all of which have either a lower cost structure and/or offer a wider variety of goods which brings people into the store.

 

[VSntchr]

Re: DSH - Dick Smith Holdings

Dick Smith has bucked the trend of retail downgrades, announcement out today showing that Q4 Like-for-Like sales are running at 4% and FY14 will beat prospectus on sales numbers.

Profit targets have not been increased so it looks like sales have performed well but prices have been cut to drive this..

Still, its a lot better than the announcements coming out of many other retailers lately.


Just to add some perhaps irrelevant scuttlebutt, I needed an external USB graphics card to run a third monitor from my laptop and I didn't even bother looking at Dick Smith, JB Hi Fi etc. I'm time poor lately and it was just far too convenient to go to eBay and find an Australian seller with a quick delivery. I know that these stores have an online presence these days - but I rarely find them beating eBay prices.

 

[notting]

Re: DSH - Dick Smith Holdings

Thanks for the heads up. I'm positive about retail at present.
But this will continue to be my hedge!!

 

[ROE]

Re: DSH - Dick Smith Holdings

Dick Smith has bucked the trend of retail downgrades, announcement out today showing that Q4 Like-for-Like sales are running at 4% and FY14 will beat prospectus on sales numbers.

Profit targets have not been increased so it looks like sales have performed well but prices have been cut to drive this..

Still, its a lot better than the announcements coming out of many other retailers lately.


Just to add some perhaps irrelevant scuttlebutt, I needed an external USB graphics card to run a third monitor from my laptop and I didn't even bother looking at Dick Smith, JB Hi Fi etc. I'm time poor lately and it was just far too convenient to go to eBay and find an Australian seller with a quick delivery. I know that these stores have an online presence these days - but I rarely find them beating eBay prices.

Try your local MSY for computer related gears ... rarely anyone can beat them on price ...
http://www.msy.com.au/home.php

I reckon JB is no longer cheap ..Dick Smith under new management seen to sell stuff very cheap and have regular sale

 

[VSntchr]

Re: DSH - Dick Smith Holdings

Try your local MSY for computer related gears ... rarely anyone can beat them on price ...
http://www.msy.com.au/home.php

I reckon JB is no longer cheap ..Dick Smith under new management seen to sell stuff very cheap and have regular sale

Result this morning has beaten prospectus. Looks like management is doing a good job and taking some market share.

Doesn't bode well for JBH that Dick Smith is saying that the positive momentum from Q4 is continuing in to the new FY, whereas JBH put out some shocker July figures...JBH is also right on the major support at $17.40ish...

 

[ROE]

Re: DSH - Dick Smith Holdings

Result this morning has beaten prospectus. Looks like management is doing a good job and taking some market share.

Doesn't bode well for JBH that Dick Smith is saying that the positive momentum from Q4 is continuing in to the new FY, whereas JBH put out some shocker July figures...JBH is also right on the major support at $17.40ish...

yeah DSH is a threat to JB i reckon, they sell stuff seriously cheap, the margin must be razor thin and they try to push volume, I been monitor their price and sale on ebay and ozbargin they start to gain traction with lot of buyers

they tend to use social media and technology to target consumers, something jb lack and leave door open for DHS to assault.

I sometimes shake my head and wonder how much margin they made if they flock stuff this cheap

 

[McLovin]

Re: DSH - Dick Smith Holdings

yeah DSH is a threat to JB i reckon, they sell stuff seriously cheap, the margin must be razor thin and they try to push volume, I been monitor their price and sale on ebay and ozbargin they start to gain traction with lot of buyers

they tend to use social media and technology to target consumers, something jb lack and leave door open for DHS to assault.

I sometimes shake my head and wonder how much margin they made if they flock stuff this cheap

JBH spend a lot of money to look cheap. The faux cheap looking floor boards and the whole Persian bazaar feel to it. I was in one the other day. It surprises me that they still have so much floor space devoted to DVD and CD's. Haven't they got the memo yet?

 

[skc]

Re: DSH - Dick Smith Holdings

I sometimes shake my head and wonder how much margin they made if they flock stuff this cheap

So true. I bought a mouse recently at DSH after comparing prices with online sites. They were $1 more expensive and saves me waiting 6-10 days.

Seriously the costs to sell bricks and mortar compared to online must be higher than $1.

Nonetheless,, the market liked the immediate result and the LFL growth in the new year. I also laughed at the comment from Anchorage regarding escrow shares... which basically said something like "We won't sell, until we sell" or something to that effect.

 

[McLovin]

Re: DSH - Dick Smith Holdings

So true. I bought a mouse recently at DSH after comparing prices with online sites. They were $1 more expensive and saves me waiting 6-10 days.

Seriously the costs to sell bricks and mortar compared to online must be higher than $1.

Nonetheless,, the market liked the immediate result and the LFL growth in the new year. I also laughed at the comment from Anchorage regarding escrow shares... which basically said something like "We won't sell, until we sell" or something to that effect.

I bought a Logitech wireless keyboard and mouse yesterday for $28 from Officeworks. I just checked and DSH are selling the same for $50. I didn't compare prices before I bought it. I was in OW for some stationary and just thought at that price it was worth it. If that's the sort of margin they're on then DSH ain't struggling.

Technology retailing just seems to be in a race to the bottom. It's amazing how prices have collapsed in the last decade or so.

 

[VSntchr]

Re: DSH - Dick Smith Holdings

I bought a Logitech wireless keyboard and mouse yesterday for $28 from Officeworks. I just checked and DSH are selling the same for $50. I didn't compare prices before I bought it. I was in OW for some stationary and just thought at that price it was worth it. If that's the sort of margin they're on then DSH ain't struggling.

Technology retailing just seems to be in a race to the bottom. It's amazing how prices have collapsed in the last decade or so.

I opted for Kmarts "Office One" brand. Wireless keyboard and mouse combo for $20 flat. Couldn't believe the price, and the quality has thus far been . Crazy times when a burger at a fancy restaurant costs more than a wireless keyboard/mouse combo.

 

[notting]

Re: DSH - Dick Smith Holdings

yeah DSH is a threat to JB i reckon, they sell stuff seriously cheap, the margin must be razor thin and they try to push volume, I been monitor their price and sale on ebay and ozbargin they start to gain traction with lot of buyers

That is the art of retail.
They are still priced below the float price despite today's out performance.
So if you think there is a future then they are a buy.

They are certainly having a go.



Commendable.

JB has fallen through support today on the back of this, it seems.
Been shown up?

 

[skc]

Re: DSH - Dick Smith Holdings

JB has fallen through support today on the back of this, it seems.
Been shown up?

DSH doesn't sell Apple ware while JBH's falling LFL sales was specifically attributed to tablets... so that may be the reason. Or what JBH management wants us to believe.

 

[hiddencow]

Re: DSH - Dick Smith Holdings

Haven't looked at the financials but my last online shopping experience with DSE was terrible and put me off purchasing from them again (and probably investing in them as well).

Ordered online. 3 weeks later nothing. Tried calling them, 30 mins on hold and gave up. I think a lot of others were having similar problems. In the end put in a paypal claim and got a refund.
I can order something from the Uk, have it dispatched within one day, sometimes hours and arrive in my hands within 1 week. Australian retailers still have a long way to go.

Ever since floating, DSE has been offering a lot of sales, including selling gift vouchers for 10% off, apple products for 15% off etc. These gift vouchers were sold online and I think responsible for a large part of their online sales growth. Is it sustainable in the long run and profitable? Or are they just trying to show some good growth figures after listing.

 

[Julia]

Re: DSH - Dick Smith Holdings

DSH - Dick Smith Holdings

Haven't looked at the financials but my last online shopping experience with DSE was terrible and put me off purchasing from them again

My experience is the direct opposite. I go there because I'm technologically hopeless, and the staff's willingness to explain stuff is hugely better than JB HiFi. Great after sales service as well. I had a printer that was faulty after a few months and it was without question replaced.

(and probably investing in them as well

Up to you of course, but it seems a bit of an odd parameter on which to make an investment decision, given the sales experience will almost certainly vary from store to store as I've just suggested above.

 

[So_Cynical]

Re: DSH - Dick Smith Holdings

My experience is the direct opposite. I go there because I'm technologically hopeless, and the staff's willingness to explain stuff is hugely better than JB HiFi.

Is this a good time to tell you most of them don't have a clue...goes for 90%+ of retail staff in general.

 

[Julia]

Re: DSH - Dick Smith Holdings

Well, there you go, So Cynical. Maybe reflects the attitude you have toward them? I've found most retail staff across all retail to be on the whole helpful and genuinely interested in doing their best for my enquiry.

And I don't know on what basis you can make a judgement about the usefulness of staff or otherwise in a shop you've never visited. Maybe things just happen differently outside of capital cities.