Sports Direct Share Discussion Threads

[danboris2] 15/9/2016 14:24

Games being played with this share price... Only 6 mil of shares traded but this big drop. Wonder whether SPD are in the market today buying, bet they are.

[spob] 15/9/2016 13:46

ft alphaville today


BE

Oh, and Sports Direct.
Sports Direct International PLC (SPD:LSE): Last: 287.70, down 18.5 (-6.04%), High: 302.30, Low: 286.00, Volume: 1.97m
BE

Citi’s downgraded.
BE

For the same reasons Peel Hunt upgraded for at the end of last week.
BE

Those reasons being that Sports Direct needs to reinvent its business model, of using Nike trainers as bait to sell Lonsdale.
BE

Peel Hunt — in an excellent note, I’d argue — saw this realisation as a Damascene moment for Ashley and turned buyer.
BE

Citi now goes, “aye, but what about margins.”
BE

Structural changes and fashion cycle working against Sports Direct
We increasingly suspect that the growth of online retailers selling branded sportswear and the increasing sales of sportswear across diverse apparel retailers (as the fashion cycle currently favours sportswear) are reducing the pull factor of Sports Direct stores. This is could partly explain why Sports Direct is moving to larger format stores to meet the more demanding requirements of the Sportswear brands and change a business model that has worked for 30 years. The timing and success of this change is uncertain.

BE

Near term profits under pressure
A combination of weak current trading, a negative 275bps gross margin headwind from fx movements and cost inflation has forced Sports Direct to cut its guidance for FY17E EBITDA to c.£300m. For reference, this compares to our forecast of £425m at the start of the year. Given current weakness in the UK apparel market and uncertainty about UK consumer cashflow, combined with Sport Direct’s willingness to sacrifice near term profit to maintain the consumer proposition, we think there is unlikely to be a near term rebound in profitability.

BE

Larger format store strategy creates uncertain profitability profile while tying up capital
Sports Direct has guided that it will spend up to £300m per year on the acquisition of freehold properties. While it is too early to fully analyse the return that will be made on this capital, the group ROCE is certain to fall in at least the near term. The longer term implications remain unclear.

BE

30% cuts to forecast, FY17e PBT £171m (EPS 23.8p, -33% yoy)
We cut our FY17e underlying EBITDA to £305m to be aligned with £300m guidance. On our forecasts, net debt/EBITDA increases to 1.5x by FY19e (3.6x lease-adjusted).

BE

Cut to Neutral rating , TP 340p
In light of the forecast cuts we strike our Target Price on 12.5x FY18e EV/EBIT. This is underpinned by a 350p DCF valuation that incorporates a 6.0% EBIT margin, against the 5.6% that we forecast for FY17e and the 10.7% that was achieved in FY15.

11:25AM
BE

Right, what else do we have?

[spob] 15/9/2016 13:37

One of the House brokers Goldman Sucks cuts eps forecasts by 20% today

must be looking at around 23p for this year i guess

[money mad] 15/9/2016 13:27

Thanks book broker!

[terminated] 15/9/2016 12:21

What exactly has caused the collapse in the price? Is it just a general negativity around the retail sector?

[bookbroker] 15/9/2016 12:19

255p, then we'll see if it bounces, share buy backs all well and good, very often have little effect if trading under pressure, and reputation irreparably damaged via weak publicity!

[money mad] 15/9/2016 12:06

What is that point that you guys think the gap will go down too?

[bookbroker] 15/9/2016 11:07

Does not SPD. own a small stake in JD Sports, might as cash em in with their price performance if they do, Pentland not going to sell out!

[rhatton] 15/9/2016 10:58

brook broker... thats what I have my eye on but just can decide with the buy back whether it will get down there. great place to go long if it does!

[bookbroker] 15/9/2016 10:56

Looks like it will close that gap from early August before attempting a recovery!

[imranawan] 14/9/2016 08:05

Have to agree DD. JD much more in the fashion sportswear market. Very impressive results issued by them yesterday though.

[discodave4] 14/9/2016 07:58

JD profit before tax +73%SPD forecast EBITDA -21%Completely different business models.DD

[terminated] 13/9/2016 23:37

Wow JD Sports are on a PE Ratio of 27.91.

[deanowls] 13/9/2016 18:04

Jd sports results this morning.

[terminated] 13/9/2016 17:42

What do you mean by good read kMann? Is there an article you can post a link to?

[kmann] 13/9/2016 08:17

Good read across JD Sports

[kmann] 12/9/2016 19:41

DOW, SP500 UP well over 1% now from fridays close. Classic manipulation imo.

[kmann] 12/9/2016 17:28

Intra day almost +1% on the dow. SPD picked up a few more shares imo.

[kmann] 12/9/2016 14:47

Market starting pull back. SPD just got cheaper to buy more imo.

Shown decent strength today considering some other fallers.

BUY 400-450

[discodave4] 09/9/2016 18:46

No probs valuehunter.Terminated - Still not convinced this should be rated on a forecast PE of 15. Will keep it on my watchlist though and good luck to all that hold.DD

[terminated] 09/9/2016 17:28

RNS Number : 3792J
Sports Direct International Plc
09 September 2016

SPORTS DIRECT INTERNATIONAL PLC ("Sports Direct" or "the Company")
SHARE BUYBACK
Further to the announcement made by the Company on 28 July 2016, and in reliance on the new authority to repurchase shares granted by the Company's shareholders at the Annual General Meeting on 7 September 2016, the Company announces that it intends to continue with its share buyback programme, the purpose of which is to reduce its share capital.

The buyback will be for up to a maximum of 29,825,290 ordinary shares, representing approximately 5% of the Company's issued share capital, for an aggregate maximum consideration of £89,475,870, and is expected to continue during the period leading up to 21 October 2016 when the Company goes into a close period in respect of its half year results.

[kmann] 09/9/2016 16:04

Good to see it moving ahead again. Looks undervalued.

Charts telling you to buy and confirm a trend reversal imo.


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