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