Associated British Foods Share Discussion Threads

[darrin1471] 20/6/2022 12:47

Back to school is a fair call. Customers will want a specific size and not a wasted journey.
Once you start putting product on a website you don't want customers finding the product is not available instore.

[roguetraderuk] 20/6/2022 12:34

must be a reason for it limited to kids. maybe its back to school or summer holidays, something they think can sell enough to provide a real picture. and given the long time coming its prob something they have been forced into doing - c&c. ship has sailed on this one in terms of bang for buck, but for the business im sure they can make it work in the way that john lewis did.

[darrin1471] 20/6/2022 12:24

Kids clothes are cheaper as there is no VAT but the margin ex VAT is the same as far as I am aware. My main point is I do not understand why you would trial c&c on a low value items unless you wanted to prove c&c profits could be made on all items including low margin items.

[queen gibbs] 20/6/2022 12:03

Darrin - not sure if the reference to higher margin is for the sales? Not VAT on kids clothes as they are classed as an essential

[darrin1471] 20/6/2022 11:45

Rogue, I've never heard of kids being higher margin.
If doing a c&c trial then surely it should start with higher priced items. It costs the same to process a £30 coat for c&c as it does a £3 kids t-shirt. Returns are higher on higher value items though.

[essentialinvestor] 20/6/2022 09:27

The usual results/trading update price action on ABF is an opening pop
which is sold off during the day. Looks a solid enough statement but difficult market
atm.

[whalehq] 20/6/2022 08:06

Incredible that they can maintain FY run rate margins in Primark given input cost inflation and without price increases to date. Other operators are really struggling in this area. LFL 2% ahead of pre pandemic, European on slow path to recovery, US looking good, city centres recovering footfall, agri demonstrating pricing power and other divisions starting to filter through.

It will be interesting to see what happens when the primark price increases come in. I'd imagine more of the same. Even with clothes 5 or 10% higher Primark is still amazing value. Where else can you fill a bag for £50 and come out feeling good about it?
I'll tuck these away until 2026 at a minimum.

[roguetraderuk] 20/6/2022 07:59

not back in these yet but c&c trial is interesting. kids clothes should be higher margin and the c&c process gets people into the stores where they prob pick up some extras on the way.

[suetballs] 20/6/2022 07:33

No surprises in the trading update - this is one hell of a well run company.
Suet.

[gateside] 16/6/2022 23:55

US Markets are shut Monday, so hopefully ABF might have a good day, without any distractions from across the Ocean!

[philanderer] 16/6/2022 23:47

Trading update monday.

[m_kerr] 16/6/2022 19:01

'significant' increase in returns from asos reported today. they have a challenged business model. and the cost of ferrying those individual packages everywhere must be going through the roof with petrol at such high prices. customers expect it to be free, never mind being able to pass on increases to customers. chances are if these return rates start to stick, they'll have to charge for returns.

at least a sale is a sale with primark.

[philanderer] 15/6/2022 10:14

Goldman Sachs cuts AB Foods price target to 1,690 (1,775) pence - 'sell'

[gateside] 08/6/2022 17:03

Goes Ex-div in the morning for 13.8p

[philanderer] 07/6/2022 13:53

TARGET OUTLOOK CUT SPOOKS EUROPE (1133 GMT)

European retail names fell off a cliff after U.S. Target delivered a middle of the day surprise, cutting the quarterly margin forecast for the second time in less than a month.

About 2 percentage points were shaved off the European index of retail names in less than 20 minutes after the news hit the wires. It is now the worst performing sector of the day, down 2.5%, having earlier fallen as much as 3.1%.

Alliance News

[philanderer] 31/5/2022 10:45

Primark executive regrets this autumn's price rises

[m_kerr] 30/5/2022 18:31

i wonder how much their UK bread business is losing at the moment, on top of the usual yearly losses. low gross margins, and wheat and energy prices being up massively, yet the price of a loaf of kingsmill is barely up, only about 10%.

bad things happen to bad businesses, and the UK bakery is a bad business.

[m_kerr] 26/5/2022 20:19

maybe poverty is the better term, but yes poverty is widespread nowadays, and people in poverty are no good to investors as they can't afford to participate much in the economy. and of course a bill going from £1000 to £2100, to £2800 isn't covered by a £400 subsidy, nowhere near.

[gateside] 26/5/2022 16:25

There is not a risk of widespread starvation in the UK.People might be going hungry at times, which is awful for anywhere, especially a developed country. But certainly not starvation.

[roguetraderuk] 26/5/2022 16:14

a lot of hedgies were quite short retail so that is aiding bounces in most cases.

[m_kerr] 26/5/2022 16:08

for most it will be £400. the average bill will rise by £800, so they will be worse off unless they get a substantial pay increase. this announcement was more about averting certain widespread starvation and quite extreme poverty, not a stimulus as happened in some countries during covid.

i maintain the view that primark's sales will be quite defensive. it is mostly functional clothing, and the cheapest place to buy clothes.

quite an odd day today. not usually one to comment on day to day movements but this was up by almost 6%, m&s almost 10%, a number of retailers popped.

[justiceforthemany] 26/5/2022 13:19

£1,200 cash injection for the poorest families can only help Primark sales

[dexdringle] 21/5/2022 17:54

m_kerr, I have some magic beans in which you might be interested....

[m_kerr] 21/5/2022 17:09

take the advice, drex, you may learn something new.

[dexdringle] 19/5/2022 19:10

Well thank you Mr Kerr for correcting me so sternly.

Your first name isn't Wayne is it by any chance ?