Retail Australian Community

Business Model Drop-shipping model whereby products are sent directly to customers by suppliers Reduces the need to hold inventory, allowing for a larger product range Complemented by a private label range sourced directly by Temple & Webster from overseas suppliers Catalysts Profitable in FY24 26% increase in revenue year-on-year (yoy) at $500m. Target of $1b+ yearly on track Market share is increasing (2.5% up 31% yoy) Profitability means cashflow generated is used to fund growth External economic Conditions Consumer confidence and disposable income levels will impact demand for discretionary items Rising interest rates or a slowdown in housing dampens demand.

Narrative on Purchase Strong revenue growth supported by expansion into Europe & US, particularly through online channels Increasing size of outdoor clothing & equipment market should buoy the company Purchased at approx $1.42 in 2022 Update on Narrative Retail environment has been challenging over the last few years Kathmandu Brands have seen approx 10% - 15% declines in sales over the last year Sales are continuing to be weak as compared to last year Why has it been challenging? Cost of living pressures make the retail environment challenging, particularly for the types of clothing Kathmandu sells Mostly high priced gear for outdoor activities.

Key Takeaways Eagers' transformation and technology investments boost employee productivity and help maintain stable margins, supporting earnings growth amid economic challenges. Strategic property acquisitions and efficient inventory management enhance financial stability and cost efficiency, positioning Eagers for substantial revenue and profit growth.

Key Takeaways Acquisition of e&s and strategic memberships are set to boost revenue growth and expand JB Hi-Fi's customer base. Supply chain improvements and cost management should enhance net margins and protect profitability amidst competition.

Key Takeaways Sustained cost pressures and aggressive market competition threaten margins, profit growth, and the company's long-term value proposition as the market matures. Shifts in consumer behavior and rising compliance demands risk shrinking the addressable market and driving up operational costs, undermining future revenue expansion.

Key Takeaways Early dominance in online home improvement and personalized AI-driven operations position the company for outsized market share and margin expansion versus competitors. Asset-light model and strong cash generation enable flexible, aggressive growth strategies, including M&A and shareholder returns, supporting accelerated and sustained long-term earnings.

Key Takeaways Growing e-commerce competition and shifting consumer values threaten traditional retail formats and less sustainable product lines, putting revenue and margins at risk. Rising labor, rental, and logistics costs, alongside fixed-cost exposure from store expansion, could compress profitability as sales growth moderates.

Key Takeaways Expanding exclusive brands and digital innovation could transform the business model, driving higher margins and establishing dominance in premium grooming. Demographic trends, omni-channel expansion, and social-driven grooming habits position the company for resilient, compounding growth and above-market revenue gains.

Key Takeaways Operational streamlining, customer focus, and business integration are set to sustain growth, enhancing both net margins and earnings. Technology investment and network expansion in Trade are projected to boost revenue through improved efficiency and market presence.