Brown (n) Share Discussion Threads

[ed 123] 20/4/2016 10:34

If the new IT system were to cause significant problems we may not hear anything until the second half of 2017, since the project is not due to be delivered until H1 2017.

The next IT rollout will be the new international web platform, which is planned to go live in the USA in August this year.

There is a lot to take in today.

Most of the costs of Fit 4 the Future will be up front, with the benefits expected 2018 onwards. We are seeing the costs come through but I haven't seen any estimate the size of the gains which we are told to expect.

In my semi-ignorant situation, I feel I am holding for reasons of faith as much as fact.

My hope is that Fit 4 for the Future succeeds and is applied to the USA. The US oversize clothing market is, of course, massive. We may be at a low point just now?

[aishah] 20/4/2016 09:45

Peel Hunt downgrades to REDUCE. Cuts target price to 275p from 340p.

[cwa1] 20/4/2016 09:23

Well, FWIW, I hope that the falls seen today are enough to allow for modest IT problems and moderately subdued trading already. So I decided to have a few as a punt. Preparing myself for cut fingers as we speak.....

[kenmitch] 20/4/2016 09:12

The danger from the share price perspective is that they are already warning of likely IT implementation problems (which strongly suggests these are already happening) sending the share down 15% so far today. So if as seems quite likely they warn again in due course (June trading update?) the share price will be hit by a double whammy.

I hold but dithering whether to cut the losses or hold for what still looks a potentially exciting strategy change. Have no knowledge about the Management team but wondering whether there are problems there.. i.e new blood needed for the big shift from the old methods that worked so well for years???

[my retirement fund] 20/4/2016 09:03

Hmm so they are basically giving themselves further room to disappoint again later on. Pne sees this time and time again where IT systems are a scapegoat for the management to keep their jobs, deflect all the blame for poor performance yet carry on giving themselves eyewatering renumeration coupled with obscene inflation busting yoy rises.

[pugugly] 20/4/2016 08:57

kenmitch: Thanks for highlighting possible IT glitches. Odds on significant problems probable - (imo) - but may be built inot current share price

[kenmitch] 20/4/2016 08:51

This (along with subdued trading since year end) is why the share price has fallen so heavily. It can be read as a profits warning or that there is going to be one. Suggests too that they are having some unexpected problems - perhaps not that surprising.

"This year will be a very important one for the Group. Our new IT platform will be implemented, bringing necessary and significant improvements to all areas of our business. However experience suggests that a programme of this scale will bring some unexpected bumps in the road. A huge amount of effort has gone into planning and preparing to mitigate these risks."

[ed 123] 20/4/2016 08:47

Ta, dlku.


Salpara111.

Agree, it's pretty much in line with the sector.

I'm still holding here and wondering if I should try to call the bottom. I did sell some into the spike created by Small Companies Sharewatch - but wish I'd sold the lot, with hindsight.

Looking for the positives, the dividend is retained, the company says it expects to make further progress this year, and after the referendum sterling may recover.

[dlku] 20/4/2016 08:30

jeffries
N Brown Group (BWNG LN): FY16 Results
Rating BUY
Price Target 415.00p

Key Takeaway
FY16 was as expected, though we cut our FY17 PBT £6m to £86m to absorb FX headwinds and planned clearance of legacy aged inventory. But we view EPS to be trending along the trough, the dividend as robust (4.5% yield), and see BWNG positioning for a stronger future. Buy.

[salpara111] 20/4/2016 08:12

Rather hard reaction but it seems that the entire clothing sector is really struggling at present and the statement about current trading being subdued is not going to help.

[eastbourne1982] 09/4/2016 20:02

ONJohn, what is your timeframe on these hitting £6 ?? Seems like an extremely ambitious prediction.

[onjohn] 09/4/2016 20:00

You know they used to say that about M&S too. Up 60p on the week :))

Theres £1 more to climb in MKS and about £3 to climb towards 600p here imho. dyor.

[eastbourne1982] 09/4/2016 19:25

Buy at £2.80 - £2.90, sell at £3.50 plus, that is the trend, why complicate things. I've done it a couple of times already during the last 12 months, I currently have no position here and will only be interested once it goes below £2.95 which will probably happen at some point.

[onjohn] 09/4/2016 18:48

Investec

Valuation looks undemanding (CY16 PE 10.9x; DPS yield c.5%) and we believe BWNG has reached the point in its business transformation programme where operational gains should start to flow through. Demonstrating sustainable growth should result in a re-rating. Move to BUY

[lomax99] 08/4/2016 18:52

They sure did, good yield too. May top up,again.

[opodio] 08/4/2016 18:45

8 weeks ago BWNG said


Q3 strategic highlights:

· Online penetration up 5ppts year-on-year to 66%, with online sales up 13%. 75% of new customer demand was generated online during the period, up 7ppts year-on-year.

· Power Brands active customer file growth of 12% and total file growth of 1%.

· All three Power Brands continued to outperform:

· Digital brands Simply Be and Jacamo performed strongly, both recording double-digit year-on-year growth

· JD Williams brand also performed well, with revenue up double-digit year-on-year; JD Williams group of titles overall marginally positive, diluted by performance of traditional brands

· Good performance over the Christmas trading period





FY15/16



Q1 (13wks)

Q2 (13wks)

Q3 (18wks)

Product turnover

+4.3%

+7.9%

+4.3%

Financial Services turnover

-1.9%

+1.0%

+3.7%

Group turnover

+2.5%

+5.8%

+4.1%





Angela Spindler, CEO, commented:

"We are pleased with our performance in Q3, during which we saw clear evidence of the benefits of the way in which we are transforming the business. After the well-documented difficult start to the season for our sector, our more agile approach enabled us to trade the business well and we delivered particularly good results over the cyber weekend and in the weeks that followed. This was driven by our improved product offering, which continues to gain traction with customers, together with our new digital marketing initiatives.



"Simply Be and Jacamo continue to show strong growth, and the potential of these brands is significant. We are also very pleased with the double-digit revenue growth in the JD Williams brand which is testament to the hard work over the past few years, and we are excited about the further potential of the online 50-plus fashion market.



"Our digital-first strategy has continued to make good progress and I am encouraged by the transformation underway in the business. We are on track to meet full year expectations, and we move into 2016 with real energy and confidence in our future."

[jbarcroftr] 08/4/2016 17:43

I think it does explain today's weakness
But N Brown are Internet focused not retail
Maybe they aer eating Bonmarch,s lunch
In their last report they referred to slow/ patchy sales from their small retail estate
So no surprise in Bonmarches results
Anyway all will revealed in 10 days

[zho] 08/4/2016 17:04

Mediocre results from BON(marche) today, with a pessimistic outlook statement. They're pitching at the same kind of market as N Brown so that might explain today's weakness.

[opodio] 30/3/2016 08:52

PE one third of BOO i think

[lomax99] 30/3/2016 08:50

Added more in the last few days.

[opodio] 30/3/2016 08:45

lovely summer frocks from BWNG and loads of ads on telly

[nw99] 30/3/2016 08:38

Buy the dip

[dlku] 29/3/2016 12:18

cheers. Very good read