Debenhams Share Discussion Threads

[topazfrenzy] 04/1/2018 19:30

I sold but decided to buy back before close as turnaround plan on course and they are still making a profit, the share price is already battered, it could bounce back strongly, Debenhams may well surprise everyone with Sergio's plan!

It could treble by the end of the year as soon as there is light at the end of the tunnel. So buy and hold for now is my advice.

[simon templar qc] 04/1/2018 18:33

My morals would be tested if a few days ago I went bullish then the share bounced and fell back to the present price!

I don't want to see job losses but that is evolution I am afraid.

Directors are ultimately responsible for the demise of a company.

I warned the dividend shouldn't have been paid they could suffer cash flow problems if things worsen.

[justiceforthemany] 04/1/2018 18:28

ST et al - I am not blaming posters for the share price fall but I seriously question your morals and how you respond to such bad news.

[justiceforthemany] 04/1/2018 18:26

At the end of the day it's a simple question: do you want to see Debenhams continue to struggle and go bust thus automatically resulting in thousands of British workers losing their jobs and causing mass panic in the retail sector? The moral, logical and sensible answer would be no. Sadly there are many on here who will say YES! and jump up and down about it revelling in the mass redundancies and shareholder losses whilst they profit from their 'shorts'.

[simon templar qc] 04/1/2018 18:26

Come off it justiceformany you will be blaming posters for the closure of Colmans next its called evolution and foxy knows that as well.

You would have been better looking at all the warning signs not blaming posters.

[simon templar qc] 04/1/2018 18:23

The Independent says Debenhams doesn't know what it is yet!



Well the bears know its a dog!

All Bucher is doing is wagging its tail but that is not enough.

[justiceforthemany] 04/1/2018 18:20

ST and others have been revelling in the demise of Debenhams posting bad comments day and night for months, even on weekends and bank holidays including over Xmas! If you don't call that 'gloating' or revelling in it all then you are blind and need help!

[1fox1] 04/1/2018 18:16

When one one industry collapses another comes along to replace it. It's the way of the world. I've seen it all before

[simon templar qc] 04/1/2018 18:14

Don't blame posters for structural issues justformany you need to refocus on what is wrong with retail in general.

The UK is behind both the US and Europe on productivity if jobs get axed its not posters fault.

Even John Lewis struggling I see a profits fall there as well.

With competition to get fiercer before it gets better there will be more casualties.

Consumers now shopping more local and that has been seen by the major supermarkets, Buchers vision of attracting consumers to towns and cities flawed.

[creddy] 04/1/2018 18:01

something fundamentally/structurally wrong here ; Next (NXT) had a surprise fillip to sales as a result of cold weather towards end of 4th quarter. Why not at DEB? I suspect dividend cut 2nd qtr this yr. having said all that, looking tempting at current levels but i'm on the sidelines for now.

[justiceforthemany] 04/1/2018 17:37

Failure of large retailers like Debenhams + others will most likely signal a British recession. Make no mistake you will all suffer. Higher taxes, housing crash, job losses (maybe even your own), higher inflation, a Corbyn led Labour government. Be careful what you wish for. Gloating and taking pleasure in the demise of a British retailer founded back in 1778 that employs thousands in the UK and internationally is deeply immoral.

[1fox1] 04/1/2018 17:19

justiceforthemany. In business it's survival of the fittest. This isn't in trouble because of shorters. It's in trouble because of bad management.

[simon templar qc] 04/1/2018 17:07

Someone will need deep pockets future payments on long lease 4.5 billion!


I did warn Debenhams was a value trap and Mould says the same.

[simon templar qc] 04/1/2018 17:04

No one is taking pleasure at all, in fact the bears trying to save investors losing money.

Blame management and not posters for the demise of Debenhams. Their business model is flawed and their plans are also flawed.

[justiceforthemany] 04/1/2018 17:00

Simon, niggle, idiot etc. Why are you taking pleasure in a famous long standing British retailer struggling? Job losses are bound to follow. Are you happy about this? At least one of your friends or relatives will have ties to Debenhams or the High Street. Seeing them out of a job makes you happy? Gloating at the misfortune of others is just wrong and deeply immoral. Sums up shorting.

[simon templar qc] 04/1/2018 16:58

Structural challenges


“Ongoing structural challenges, a soft consumer environment, rising costs and increasing capital expenditure demands make for a difficult outlook, in our view,” Liberum said as it repeated a ‘sell’ rating and cut its target price to 25p from 40p

.
Analysts at Numis advised investors to “continue to avoid” the stock, reiterating a ‘hold’ rating and target price of 30p.
“Having been using the same line since 2013 we risk sounding like a broken record, but we cannot see past the severe structural pressures facing Debenhams - cost and share implications of online shift, low margins, long leases, high capital expenditure requirements, low returns, margin pressure from mix - particularly with the net debt to EBITDA ratio now also increasing notably,” it said.

Amisha Chohan, equity research analyst at Quilter Cheviot, also thinks Debenhams is “structurally challenged” and believes its dividend may be at risk.
“We continue to believe Debenhams is structurally challenged by a customer proposition lacking differentiation and an inflexible store estate (average lease 19 years), forced to continue investing in online assets, which typically deliver a lower return,” Chohan said.
“The dividend may also be at risk, due to an increase in investment in the business.”
Debehnams 'slow to adapt to the online world'
While the group achieved a 9.9% increase in online LFL sales growth and a 2.6% rise in international sales over the 17-week period, this was offset by a 2.6% decline in UK sales.
Traditional brick and mortar retailers like Debenhams have been late in responding to the growing trend towards online shopping.
Recognising the need to invest in its digital offering, Debenhams poached Amazon executive Sergio Bucher as its chief executive in October 2016 to introduce an online strategy.
“Debenhams was slow to adapt to the online world, has previously failed to focus on full-price sales (although Mr Bucher is now trying to fix both of these now) and its large format stores are not sufficiently local or convenient for customers to use them as click-and-collect stops,” said Russ Mould, AJ Bell investment director.

Bid for Debenhams seen as unlikely

Mould added that Debenhams is locked into long-term leases with a lack of property assets with which to tempt any bidders to put “shareholders out of their misery”.
The company ended the last financial year with just £9.3mln of property assets on its balance sheet and lease expenses on its store estate, warehouses and offices and properties came to £221mln.
Future payments on existing leases are estimated to be £4.5bn, based on current terms and conditions.
“This is a considerable burden on the company and one that investors must take into account as they ponder whether Debenhams’ shares are now looking very cheap or are nothing more than a classic value trap,” Mould said.

[simon templar qc] 04/1/2018 16:51

Telegraph...

Dividend is bound to be cut according to my take on article..



So where is the yield?

There wont be any!

[simon templar qc] 04/1/2018 16:46

Hargreaves Lansdowne sees no upturn....



Bid by Ashley is possible but an outside chance.

[simon templar qc] 04/1/2018 16:40

Bid alert rubbish, no one will want to bid for Debenhams they risk losing hundreds of millions.

Things will get worse for Debenhams not better. They are having to run fast to stay still and they risk moving further backwards.

Cost pressure will increase wait while Amazon come into full swing.

The stores are far too big and they wont be able to make use of too much space.

[1fox1] 04/1/2018 16:39

NY Boy.......Considering he's called this right all the way down from about 80p your reply is without foundation. You are obviously well down from your original investment but there is no need for personal comments.

[simon templar qc] 04/1/2018 16:29

niggle,

Its laughable Debenhams Bucher says brands are dated! LOL

[1fox1] 04/1/2018 16:12

GAME SET AND MATCH............TEMPLAR QC