Debenhams Share Discussion Threads

[edmundshaw] 30/10/2015 14:24

I note in the final results that Debenhams management are intending to move to a progressive dividend policy, with a longer term target dividend cover of 2.5.

Given earnings this year were 7.6p, they are already getting close to this, and given the good start to the year the future is looking bright!

[isis] 26/10/2015 18:04

6 Oct 2015 Debenhams PLC DEB Jefferies International Buy 85.90 87.00 105.00 105.00 Reiterates

[isis] 22/10/2015 15:51

I see no reason why these shouldn't do as well as some of the other stores like House of Fraser.

New CEO should sort it.

[libertine] 22/10/2015 12:56

Simon

As far as Debenhams is concerned, I would say your view is definitely more negative than objective!!

[simon templar qc] 22/10/2015 12:44

I am only giving you an objective view.

[pillion] 22/10/2015 12:38

Go DEB Go !!

ST; you're way too cautious

[edmundshaw] 22/10/2015 09:05

Pleasant reading from DEB results today. Another tear with this CEO is good news, and means they can have a long look to finding a good successor.

Asos took the lead with online sales a few years back, but Debs has now latched on to a good slice of that action, with the added advantages of click and collect.

The dropping debt and prospective yield as "the board intends to adopt a progressive dividend policy in future", this now looking to me a comfortable investment. So I added.

[isis] 22/10/2015 08:38

Traffic Rank doing well atm.

Global Rank
Global rank icon 3,765 31
Rank in United Kingdom
United Kingdom Flag 108

[simon templar qc] 22/10/2015 08:33

Market taken the news as positive at moment however its too early to speculate. The company is to have a analyst presentation at 9 am and the press yet to have anything of substance to say. I still say the upside is limited and there will be profit taking at some stage. Yield could hold the share price up.

[isis] 22/10/2015 08:18

Also prospect of getting a good new CEO.

[simon templar qc] 22/10/2015 07:36

Results out initial observations:

Highlights...

Financial headlines
-- Gross transaction value up 1.3% to GBP2,860.1m
-- Group like-for-like sales up 2.1% in constant currency, up 0.6% as reported
-- Group gross margin rate maintained, with 90bps markdown improvement on last year
-- Operating profit up 4.3% to GBP134.1m reflecting good cost control

-- Profit before tax in line with market expectations, up 7.3% to GBP113.5m (2014: GBP105.8m(1) )
-- Basic EPS up 7.0% to 7.6p (2014: 7.1p)
-- Final dividend of 2.4p per share; maintaining full year dividend of 3.4p per share
-- Following strong cash generation, net debt reduced by GBP41.7m to GBP319.8m

-- Current net debt/EBITDA 1.3x (2014: 1.6x), medium term leverage target improved to 0.5x from previous target of 1.0x


Debenhams met market expectations but nothing sparkling.

Profit up 7.3% EPS up about 7% which is showing growth faster .Sales growth poor in my opinion.

Margins steady. Dividend flat. They intend to rebase dividend cover. Debt down £40+ million down, nothing there overall concerning.

The company state they have had a good start to the year but, its too early imo to draw any conclusions to key Christmas period.

So overall what do I think?

With the global economy weakening Debenhams is still at risk. Part the strategy on less sales per year seems to be working but sales growth poor.

Debenhmams has had a fair run lately share price strengthening the share price a discount to sector however the company is still at risk with a weakening global economy.

I see no large upside to the share price at the moment, if anything the share price could weaken.

CEO to go! That suggests to me his is going while things are just about OK which will give him a nice golden handshake. Have seen this before CEO goes and things weaken later on!

A long line of management changes in retail sector the last one at John Lewis.

Argos gave a profit warning very recently!

So there we are folks nothing sparkling and nothing overly worrying my overall take is share price could weaken I would be likely to take profits at the current price if I held, which I don't as the company is still at risk of further downside at the moment.

[djgrantb] 22/10/2015 07:31

Beat Telegraph "forecasts" by £10m and CEO to steep down in orderly fashion, let's see how markets react... Not a bad day!!

[18bt] 22/10/2015 07:28

Decent but unspectacular results. However, stronger cash generation and a more confident tone to the outlook statement should put a floor under the shares.

[redbraces] 18/10/2015 16:26

hxxp://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11938448/Debenhams-in-rare-profit-jump.html

[djgrantb] 16/10/2015 14:25

Recovering from recent low of 75p would expect target of 89p before Christmas, if Christmas trading is good 95p+ in the new year imho

[isis] 16/10/2015 12:22

These have been slowly creeping up.

[pillion] 12/10/2015 21:54

Good find Simon

[simon templar qc] 21/9/2015 07:26

Trouble ahead in boardroom....

"A boardroom coup at department store group Debenhams is being planned by Cenkos Securities, the City stockbroking firm, which has rallied major investors including Neil Woodford to its cause. The broker's plans, which include the possibility of deposing chairman Nigel Northridge and chief executive Michael Sharp, follow several years of weak trading since re-listing in 2006, the Sunday Times noted." -

[gbb483] 15/9/2015 10:11

That would be 'respite'

[simon templar qc] 15/9/2015 10:04

Inflation fallen, deflation on the cards.

[djgrantb] 01/9/2015 13:28

STQC, your comments made me chuckle, Institutional sell off was in fact Norges Bank who sold 23,273 shares out of a total holding of 36m + hence reduction from 3% to 2.99% I believe Friday's sell off was over done and not just down to UBS downgrade, who else is a client of UBS!! Seems to be plenty of buyers at this price, so not falling in line with the market. We need a few up days rest bite from China jitters.

[simon templar qc] 01/9/2015 11:50

Broker downgrade and news today institution sold down. I would have thought more downside on a bad market day as well.