Steinhoff 1Q update - things still unclear

Yesterday after the market closed, Steinhoff released its Quarterly update, for the three months ending 31 December. Meaning the post-implosion period only accounts for three weeks of these numbers. The first thing I looked for was an update of when PWC would release their findings.

"It is not possible at this stage to provide any definitive timing for conclusion of the PwC investigation, but the company will provide regular updates on any material developments and clarity on timing as soon as possible"

Here is a look at their top line performance.



As you can see, Mattress Firm (US operation) is hurting while they are in the process of revamping the business. Here is what management had to say:

"During the quarter under review, 99 stores were closed, while eight stores were opened. Management aims to close approximately 175 stores and open 75 new stores"

"Furthermore, management has identified that the change in major supplier has resulted in gaps in the product range that are being urgently addressed."

"Mattress Firm's like-for-like sales being down by 10% for the period under review, largely driven by lower average unit selling prices. Like-for-like unit sales for the group declined by 3%."

It all still looks rather ugly. To make matters worse, German media and Moneyweb are reporting that incriminating emails between Jooste and senior management have been uncovered (#SteinhoffLeaks Part 1: 'Some big mistakes'). If you are still holding the share, the end to this sh*t show doesn't look to be any closer.