Debenhams Share Discussion Threads

[simon templar qc] 21/8/2017 11:30

Trading in shares been lacklustre lately but trading increasing as share price still falling is not a good sign.

[essentialinvestor] 21/8/2017 08:41

It is peak holiday season in fairness.

I picked up a few nice bargains in the HoF sale Guildford store.

[diku] 21/8/2017 08:12

Think insiders have lost the plot...they living in yesterday era...

[simon templar qc] 21/8/2017 07:28

Same as where I live and it was dead, not many in store. I suspect there will be announcement on store closures soon.

[bellymonster] 21/8/2017 05:16

Took a stroll round our local store yesterday for the first time in years and literally nothing is different.Same brands in the same locations, and they even had an identical shirt that I must have purchased more than 5 years ago.Racks and racks of discounted stuff but very few customers.If they are to survive they need to start changing things quickly.

[simon templar qc] 16/8/2017 14:07

Niggle,

Extremely good link which I have just read thanks have voted your post up. The High Street and retail is set for a major change and its just the beginning.

[niggle] 16/8/2017 07:59

Interesting read on the near collapse of Sears

"Some observers say it is difficult for them to imagine a scenario in which Sears doesn’t go into bankruptcy. “There has been a long, steady sale of assets to the point where the cupboard is pretty bare,” said Ken Perkins, the president of Retail Metrics, which provides independent research to institutional investors. “It has been a long, slow bleed to keep the company afloat.”

“It is a shame,” Mr. Perkins added, “because this was such an iconic retailer.”

[simon templar qc] 15/8/2017 13:38

Laura Ashley in trouble...

15 August 2017
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) no 596/2014.
Laura Ashley Holdings plc (the "Company")
Notice of Results & Trading Update
The Company will announce its full year results for the 52 weeks to 30 June 2017 on 23 August 2017.
The results will show an exceptional GBP2.8m impairment charge due to the revaluation of a freehold property owned by the Group. In addition, and as previously disclosed, trading conditions have continued to be demanding.

The Board of the Company therefore expect net pre-tax profits for the year ended 30 June 2017 will now be materially below market expectations.

[ltcm1] 15/8/2017 12:41

I feel the problem with Debenhams is not that they are bad as such but they have this level of debt and they are getting massively squeezed from everywhere. In the old days retailers would have the cushion of owned property and some element of retained profits to tide them through the tough times.

Retailing can be a game of musical chairs at times and plenty of decent retailers have gone bust in the past. Next were only weeks away in the 80's and the shares went to 6 pence.

[simon templar qc] 15/8/2017 12:06

John Lewis had a batter week up over 5% fashion over 7%..



The poor weather increased sales for outwear which is only bringing sales forward.

[simon templar qc] 15/8/2017 07:24

Bleak outlook for pay:

"
Wages are expected to rise by only 1% in the next year because of an over-supply of job applicants, according to a new forecast.
The report, by the Chartered Institute of Personnel and Development (CIPD) and staffing group Adecco, said a strong workforce - boosted by an increase in workers from the European Union - means 24 applicants are chasing every low-skilled job, there are 19 candidates for every medium-skilled vacancy and eight for every high-skilled post."

With inflation set to hit near 3% consumers are hitting the brakes on spend.

[qantas] 14/8/2017 09:58

hxxp://shorttracker.co.uk/company/GB00B126KH97/all

Shorts have made loads of money on shops they are now at 13.10% or 160,844,701 SHARES TO BUY BACK

PLEASE DO YOUR OWN RESEARCH....

[diku] 14/8/2017 08:56

Yes consumers are very price conscious these days...and I think Deb seem to have gone off track in terms of pricing on clothing they are selling...out of touch with consumer market...just display & hope for the best attitude...

[simon templar qc] 14/8/2017 07:28

Retail footfall falls, more so in London...



Consumers spend less on clothes as incomes get squeezed.

[ltcm1] 13/8/2017 21:53

FWIW I don't think Lidl and Aldi are in Debenhams marketplace.

What worries me is I think Mike Ashley thinks he can do a Philip Green with Debs, buy them cheap and gouge the company. He'll probably stick Game Digital in there too!!!

[ltcm1] 13/8/2017 13:03

Thanks for the info Mr Templar.

The trouble is if M&S, John Lewis and Next are all getting margin squeezed then I think this profit target could come under a lot of pressure in this crucial trading period.

Purely my guess but I can't see Debs getting any money off shareholders should they come under financial pressure.

Another worry is Mike Ashley's 17% stake in Debs. It could lead to a lowball offer just at the point when there are no other options. And Goldman Sachs appear to be on the other side of Ashley's trade.

[american idiot] 13/8/2017 08:39

Simon Templar...

I've no doubt whatsoever you will be right with DEB in due course.

Too many headwinds against the company. One negative a company can manage but when theres negatives coming from all directions (With no chance of a sudden upturn) then its guaranteed things will only get worse.

Current profit forecasts will be at the lower end of expectations followed by a profit warning(s) into H1 17/18.

[diku] 13/8/2017 08:13

If they are virtually giving away school uniforms then it begs the question who is making these uniforms and how much are they being paid?...


As Aldi and Lidl expand you can bet your life they will start to take more of household spend. They are moving into household goods, and clothes. They are virtually giving away school uniforms.

[ny boy] 12/8/2017 22:44

All good in the hood, ignore the noise.

[simon templar qc] 12/8/2017 21:49

Debt circa £216 million at 4 March 17, not too bad but costs will rise second half which is worst half.

Meaaly forecast profits of circa £86 million simply not good enough. Onerous leases and store closures would eat into cash.

They could do a cash raise but that would be highly dilutive at current market cap.


Shorts increasing again

edit: In actual fact the company stated that profits could be at the bottom of the range, of 18 forecasts the circa £86 million being the medium.