27 Aug MORE BLING, MORE PIZZA – THE REPORTING SEASON SO FAR; WHAT IS ‘TREAT BRAIN’?
Welcome to this week’s business and media intelligence update.
MORE BLING, MORE PIZZA — THE REPORTING SEASON SO FAR
Now the reporting season is coming to a close, it’s time to ask: how has the pandemic lockdowns impacted our listed companies?
We know construction, transport and hospitality have been hit hard and so, too, travel, airports, and airlines. But what about those “feel good” consumer goods?
Well, let’s take Silk Laser (ASX:SLA), a chain of clinics offering everything from laser hair removal and “body sculpting” to cosmetic “injectables”.
It seems that with more office workers at home and communicating via video conference, we have become more conscious of our appearance on a computer screen.
The result? A spending boom on personal grooming and cosmetic injectables. The so-called Zoom face effect has underpinned a very successful year for Silk Laser with the company reporting a revenue increase of 82 per cent to $58.9 million. Read more about Silk Laser’s results here.
Not only are stay at home consumers spending more on botox and skincare treatments, we are also treating ourselves to more bling.
Fashion jewellery retailer Lovisa Holdings (ASX:LOV) saw an increase in NPAT of 121 per cent to $24.8 million, with sales reaching $288 million in the year, up almost 19 per cent. Read more about Lovisa’s results here.
Then there is home fashion. Goodbye suits and ties, hello, casual wear … This casual trend helped youth fashion retailer Universal Store (ASX:UNI), to report that net profits jumped by a huge 90 per cent to $24.4 million. Read more about Universal Store’s results here.
Another major winner of the pandemic is Australia’s largest pizza chain, Dominos (ASX:DMP), as we find lockdown comfort in a delivered Mega Meatlovers. The company reported a revenue of $2.19 billion, a rise of 15.4 per cent on the previous year. Store network sales rose 16.6 per cent to $3.7 billion and online sales were up 21.5 per cent to $2.9 billion. Read more about Domino’s results here.
WHAT IS ‘TREAT BRAIN’?
Speaking of pizza …
Hello, treat brain, a pandemic era phenomenon wherein you “treat” yourself with everything from handbags or oysters or trashy TV as a way of coping with the stress of being in lockdown.
Where previously you might have splurged on a purchase you couldn’t afford or allowed yourself the occasional unhealthy meal, or adult beverage, you no longer have the impulse control to avoid doing these things on a daily basis.
As the Financial Times puts it, “Gone was the little voice in my head that used to gently intervene when I was overindulging. Treat brain was in charge.”
It’s a genuine problem, and it might explain why alcohol sales went up in 2020.
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