Debenhams Share Discussion Threads

[simon templar qc] 04/1/2018 12:23

Debenhams got itself to blame say SKY news...



The tanker cannot be turned around overnight!

But it will still struggle with long leases on its bricks and mortar stores, weak consumer spend and continued rise in its costs. Minimum wage goes up again this Spring business rates will rise.

Debenhams could be doomed.

[terminated] 04/1/2018 12:08

They need to cut the divi now, 10% is nothing compared to the drop over the last few weeks and they could do with the capital on the balance sheet. With a market cap of 430m one could argue negativity is built at these levels but it's all about sentiment and long term outlook which will be a black cloud for at least a year. Still a possible takeover target at these levels. The only two stocks I'm sitting on a loss in last 7 years are these and another retailer.

[simon templar qc] 04/1/2018 12:07

Avoid say TMF

[simon templar qc] 04/1/2018 12:04

Mail dividend at risk

[simon templar qc] 04/1/2018 12:02

FT comment

[1fox1] 04/1/2018 11:46

QANTAS....You haven't agreed all along have you?

[coiin stein] 04/1/2018 11:45

18.5 a very strong possibility here, over the next few sessions

[simon templar qc] 04/1/2018 11:38

What a load of baloney profits warning tend to come along like London Red Busses!

The environment for retailers will get far more aggressive, the weak will fall.

[simon templar qc] 04/1/2018 11:32

Have lowered my price target in header as I warned I would now to 20-25.

[simon templar qc] 04/1/2018 11:30

I did say 25 pence weeks ago.

[topazfrenzy] 04/1/2018 11:30

I think Simon whatnot was a shop worker that was sacked at some point by all the big retailers and is therefore obsessed with the whole sector lol

[edmundshaw] 04/1/2018 11:28

Clearly Debenhams need to reinvent themselves, and fast. This is in fact what they are doing. One poor Xmas is neither here nor there, what is important is the unknowable future and how good we can be at guessing it.

Two new broker targets today: Peel Hunt changes to Sell from Hold but keeps its price target at 55p (really?!) and Liberum says 25p from 40p. Also Sell rating. The first is nonsensical and the second sets the price target to somewhere near where it is now, effectively admitting their last one was hopeless. I really don't know why these brokers bother with their nonsense...

The truth is this will recover or it will go down the tubes. You pays yer money and takes yer choice. But £60m profit in what might be a bad year is not a total disaster - they could even afford to maintain the dividend on that basis if they wish...

[justiceforthemany] 04/1/2018 11:27

What is the target share price for shorters here?

[simon templar qc] 04/1/2018 11:25

Just you watch John Lewis will warn on profits in the Spring if not before, sales may be up but like for like poor.

Its not the time to buy retailers until more clarity which could be a few months.

[justiceforthemany] 04/1/2018 11:21

Sales were only down 1-2%. Over discounting/low margins is the reason for the profits drop.

What is the target share price for shorters here?

[simon templar qc] 04/1/2018 11:19

What can I say if I warned once I warned a thousand times that Debenhams would struggle!

Seems the company had no option to bring the trading date forward once they saw a possible rise in share price lately.

With costs continuing to rise it doesn't look good.

I also warned it was foolish to pay the dividend as they did.

Sorry for holders but there we are.

[bookbroker] 04/1/2018 11:13

Private Equity firms are simply a bunch of vampires, when they take over a company and releverage it, taking monstrous slices of capital out of business they should be taken to task for straightforward theft, off course the gullible funds that support the re-flotation of these companies are to blame as much as the idiotic public investor, there is no value here frankly, it is outdated and outclassed, but off course another vampire fund will pick up the pieces on the cheap, strip any value left and leave the carcass to rot!

[hooley] 04/1/2018 11:12

Bear closing will provide a brief opportunity to say goodbye?

[topazfrenzy] 04/1/2018 10:49

Hi sooty, how are you?

[barvin] 04/1/2018 10:43

Would 25p provide great value or is there still significant risk at that price? Will the divi now get cut? Could add a few million on bottom line with that

[tim 3] 04/1/2018 10:41

Hard to see what will drive these upwards,quiet time for retail and a poor peak season which will hang over the shares.

[walbrock82] 04/1/2018 10:38

Can't completely put the blame on Debenhams, they got the curse from being owned by these private equity firms.

In 2003, total borrowings were £100m before PE firms leverage the balance sheet up to £1.2bn of debt. By 2006, they made out like bandits when it got re-floated.

Since then, Debenham was focussed on paying off their debt while the competition went full steam ahead. They didn't invest in the necessary infrastructure to keep up with their competitors. Now, it's a little too late. I think it's time to downsize the firm and optimise profitability, given that sales are close to £3bn.

[bookbroker] 04/1/2018 10:29

Qantas, new names, most of us simply don’t bother with general retail because there are too many clouds, strange how lifestyle stores with a specific brand doing adequately, might only apply to Superdouper, however the department store format is diminishing more rapidly than Donald Trump’s toupee these days, and that is due to the cannibalisation of brand names and the fact people are finally waking up to the fact they do not need to keep accumulating clutter just because the price is right!