Debenhams Share Discussion Threads

[edmundshaw] 26/10/2017 21:44

In fact, M&S has been getting it wrong, with falling retail sales and a CEO who said M&S give their customers too many reasons not to shop with them, complaints the ranges are too young and now lost their buyer while the head of non-food in ex-Halfords and McDonalds!!

Meanwhile John Lewis has lost a senior director.

And Debenhams has been quietly getting it right, still looking after their (and the M&S) age ranges while catering for the young with their hegemony in Beauty. Sales barely down in spite of big changes and difficult conditions.

[tfftfoos] 26/10/2017 21:23

Some thoughts on timing

[qantas] 26/10/2017 21:12

Who cares wins I suppose Simon.
Hope you get what you want whatever it is.

[simon templar qc] 26/10/2017 21:08

QANTAS

The FCA know who I am in fact I keep them on their feet!

[simon templar qc] 26/10/2017 21:06

Qantas any idea why £ is falling?

Well its not got anything to do with robust growth as the retail sales are not looking good at all.

This month is bad, and November not looking too good.

What was missing from results?

Weekly like for like post year end!

[qantas] 26/10/2017 21:06

Simon on these chat line you must careful the FCA may monitor you just for your own protection Kind regards

[simon templar qc] 26/10/2017 21:01

Not as desperate as yours DYOR



The figures speak for themselves weekly earnings are falling that means less to spend, less to spend = less to spend in shops or indeed online.

[qantas] 26/10/2017 20:58

Simon not the saint so sorry but your posts do sound desperate. This chat line, don't have any effect on the share price the price is the price.

[simon templar qc] 26/10/2017 20:36

Retail sales fall most...

[simon templar qc] 26/10/2017 20:28

But profits have fallen year on year for 5 years, despite sales rising. That speaks more volume than making excuses.

[edmundshaw] 26/10/2017 19:47

Simon, you also need to look at some one-off reasons for the fall in basic profits and some reasons this may improve. The cost of the Living Wage was around £10m (one-off); pension contributions to 2022 have been agreed at £5m p.a. (down from a prior agreement of £9.5m); It systems and warehouse automation expenditure was £44m: that is going to filter down to the bottom line, as is the closure of the distribution centre at Northampton and some regional warehousing facilities (£8.8m exceptional costs). Of course store refurbs and new stores give rise to "perennial exceptionals" with physical retailers; but DEB is not about to open a hundred new stores in the current environment. The refurbs will be serious though in the age of Sergio...

Of course if you only ever look at the negatives, I suppose you will ignore or somehow seek to invalidate these points. But they are there for everyone else to see.

[walbrock82] 26/10/2017 19:31

The fall in earnings is priced in. But with continuing uncertainty and a growing risk of their dividend getting cut. I see them as reasons to remain cautious. But Debenhams is trying to change their business model for the new age and become more online and fewer bricks and mortar.

Right now, the share price is fairly value, at best.

For full analysis of Debenhams and other companies’ result analysis, click

[simon templar qc] 26/10/2017 18:44

No mention from press about a number of concerns:

UK largest market by far and operating profit fallen 22% from 94.9 million to £74 million!

Basic eps 4 pence divi only just covered.

All very well ignoring exceptional charges but there were exceptional charges last year and there are bound to be more if they shut up to 10 stores. There comes a time when they are no longer x but ongoing costs.



edit:

16 Post balance sheet event
On 5 September 2017, the Group acquired a minority stake in blow LTD. for a cash consideration of £7.5 million. blow LTD. provides beauty services and is registered in the UK.
 

[edmundshaw] 26/10/2017 18:16

Thanks jftm, nice update.

QANTAS there are lots of plus points! That is certainly one...

[qantas] 26/10/2017 18:16

Plus point Sergio is ex Amazon so he knows internet sales..

Sergio Bucher, was vice president of Amazon’s fashion division in Europe, and has taken up the role of chief executive at Debenhams in October last year.

writes Nathalie Thomas.He has been at Amazon since 2013 and has extensive retail experience, particularly in the online sector, having also worked at Puma, the sportswear brand, and also Nike and Inditex in the past.

[justiceforthemany] 26/10/2017 18:01

INVESTORS CHRONICLE 26/10/17 - BUY RATING
Investors who have had to stomach the 14 per cent share price fall since Mr Bucher took the helm may be able to take some comfort in management’s decision to maintain the dividend at 3.425p. The retailer trades at a wider PE RATIO DISCOUNT to peers than its historic five-year average, implying further UPSIDE once the discount reverts. But the shares also come with an attractive 7.4 per cent yield – that should keep investors satisfied until the recovery really kicks in. BUY

[edmundshaw] 26/10/2017 17:59

A couple of large trades (below the mid price) after the bell and a largish, though uninformative auction. The 900k at 45.6813p seems to reflect the price action today.

There are quite likely to be adjustments of institutional holdings now, so the share price in the short term is anyone's guess, there are both bull and bear points for Debenhams.

I remain long as I like the look of Sergio's changes: rational and positive but not too dramatic. Therefore I view DEB as cheap. It is also good to see him not playing games with the dividend to suit himself, something prevalent among a certain type of incoming CEO. IMO he is right to hold the dividend; if necessary it can be cut or raised if conditions warrant it.

[qantas] 26/10/2017 17:48

Simon the saint so sorry don't agree only 0.02% by cape view repurchased

shorters leaving a very nice 12.48% to be re purchased or 160,600,549 shares.

It takes time for the institutions to get authority to hit the buy button.

MKS short going up and the share price going up.

www.shorttracker.co.uk/company/GB00B126KH97/

Please do your own research.

[simon templar qc] 26/10/2017 17:35

Qantas

Article fair comment however profits came in after exceptionals and dividend may be sustainable on present situation but consumer spend is worsening not getting better.

As for Costa Coffee you can just about get it anywhere.

The market has spoken today the share price fell on a reasonable day. But for the dividend and slightly better like for like sales the share would have sunk sharply.

[qantas] 26/10/2017 16:58

"In the short-term at least, Mr Bucher has little choice but to play the cards he’s been dealt, and filling up excess sales space with gyms, restaurants and other social spaces will have to do," said George Salmon, analyst at Hargreaves Lansdown. "The one ace up his sleeve is the group’s excellent cash generation. This not only helps underpin the dividend in the near term, it should provide a means to get these various new initiatives up and running.”

Debenhams announced a 3.4p dividend per share and said that it now had a pension surplus of £80.9m.

[qantas] 26/10/2017 16:36

Owen ski yes agreed you are one of the stragglers left.
Are you able to see how fast the shorters go from the number of posts today.

[owenski] 26/10/2017 16:08

What. Just the mugs left then.

[qantas] 26/10/2017 15:25

owen ski all the shorters gone now...

[owenski] 26/10/2017 15:13

Mugs game buying for a yield only to watch capital depreciate by even more.

Market not impressed by today then.