Currys Share Discussion Threads

[mikepompeyfan] 29/12/2014 06:42

hxxp://www.fundweb.co.uk/opinion/featured-opinion/william-meadon-how-2014-was-the-year-of-self-help/2017379.article

One of the principal themes running through the JPMorgan Claverhouse portfolio in 2014 was that of self-help. Given the tough economic backdrop, we thought this would be a characteristic of many successful UK companies.

In recent years Dixons has epitomised just how beneficial self-help can be to a company. Under the insightful leadership of Seb James, Dixons has transformed itself from a lowly regarded, high street vendor of electrical and white goods to the “go to” retailer, on both the web and high street, for all electrical and internet-related consumer devices.

The merger during the year with Carphone Warehouse was a strategic master-stroke which will consolidate their competitive advantage further. Despite a spectacular performance from the shares in 2014 we retain a significant holding of Dixons Carphone in the Claverhouse portfolio in the strong belief that there is yet more to come from this newly merged company.

We remain positive on the consumer sector as a whole. The recent precipitous fall in the oil price is likely to provide a boost to consumer spending in the new year and we expect our holdings in Restaurant Group, WH Smith as well as Dixons Carphone to benefit from this.

[anony mous] 28/12/2014 20:25

Need a full size dishwasher.Looking around but once again it seems argos is best bet for stock and price etcStill looking tho....

[tim 3] 28/12/2014 14:00

Plenty of snow about.

Not good for these critical 2 weeks.

[tim 3] 27/12/2014 21:08

Neil Saunders
‏@NeilRetail Christmas Day orders up 19% at John Lewis - the biggest ever Christmas Day. 72% of traffic came from mobile devices.

[anony mous] 27/12/2014 18:59

New combined pc curry store looked very impressive.But once again I had to buy elsewhere.PS4. No display. Empty shabby box on shelf with mix of PS3 and PS4 poster bundles.Next door Argos was well displayed.Finally bought from GAME and spent £676 total. Console games controller camera etcShame really.This is my 5th big buy and not from dc.I bought this 2 weeks ago. Well in advance of xmas.The stores food gadget and tv area looked good though. Lots of staff.

[tim 3] 27/12/2014 10:45

Mixed reports on Boxing day sales.

But facts seem to indicate sales a little down but online may take up slack.

[tim 3] 24/12/2014 22:33

Its been highlighted many times before.

Dixons put much more focus on holding minimal stock levels (just in time delivery) and getting rock bottom prices at any cost from manufacturer's than availability.

As a result they lag behind much of the competition in this area, have witnessed it myself many times over the years.

But with internet retailers offering next day delivery on many items it is something they really can not ignore any more


Merry Christmas everyone enjoyed the banter over the year.

[micktravers] 24/12/2014 12:27

Well thats me finished for the year.

Happy Christmas to all especially those who purchased sub 20p.

[micktravers] 24/12/2014 12:05

My Laptops arrived this morning. I saved £140 and a lot of inconvenience.

As a Shareholder I would of much rather of purchased these from Currys so come on Seb this needs to be sorted. You need to be closer on price and If Very can get Laptops delivered straight from the manufacturer within 2 days then there is no reason why Currys can't do the same.

I'll take the positive that is ..... If Currys can start competing and listening then my investment should prove to be even more rewarding.

[justwondering] 22/12/2014 21:40

Mick your spot on.

[micktravers] 22/12/2014 20:56

Some people just don't get it.

[justwondering] 22/12/2014 20:15

Well , they may of lost out on £400 worth of business, but have they lost any profit? turn over is vanity , profit is sanity .

[micktravers] 22/12/2014 19:43

I hate to knock any shares especially this one as I have a large holding but....

This is my experience this year.

Earlier in the year I tried to buy an SLR Camera before my holiday to America but my local Currys store in Harlow had none in stock. They had plenty on display but on requesting 4 different models none in stock was the answer time and time again.

I logged a call with their online team and asked that their Senior management team be made aware but just got standard replies.

Today I tried to buy 2 Laptops from the same store and asked them to match the price on the Very Website. I was told they did not price match with online websites and the particular model I wanted was not in stock. However they reserved 2 for me at their Enfield branch. As the price difference was £70 on each Laptop I placed an order online with the Very Website and they are being delivered on Xmas Eve. So this year they have lost £400 worth of business on my camera purchase and £760 on my Laptop purchases.

So Dixons still have a lot of work to do.

I wonder what Seb would have to say about my experiences?

[mikepompeyfan] 21/12/2014 08:06

Cheaper fuel and cheaper food means people are feeling more wealthy.
Electricals are in for a strong growth period imo.

[smicker] 20/12/2014 16:59

Its clear the brokers are having trouble valuing the company. There is an internal restructuring at Dixons, a merger with Carphone warehouse, loss of phones4U, 1st Christmas trading as a newco and a consumer recovery to factor in. IMO they have taken a view that the company will be better for it so the target price should be 10-15% above current. As we approach those prices i expect targets to move up accordingly but to have little grounding as no one is sure of the potential here. I'd be more inclined to follow the company statements closely.

[jondev] 20/12/2014 14:31

My opinion is its great, been in for nearly 4 years and have made good money.

[lukesegura] 20/12/2014 13:49

Whats peoples opinions of a target for this share? Brokers say around 480.?

[gerdmuller] 19/12/2014 15:26

Don't you just love the Americans with their Big Macs and their cowboy boots.

The market was in turmoil early on this week until panic set in in the central bank and everything changed again.

Doesn't seem 5 minutes since these were approaching pounds 4 and now pounds 5 looks on the cards if it carries on like this for much longer.

All this liquidity pumped into the economies with no home to go to has its benefits. I'm not complaining as its certainly helped these.

[mike740] 18/12/2014 14:54

Dixons Carphone plc (DC.) Ordinary 0.1p

HL COMMENT (17 DECEMBER 2014)

Half year results: Targeted cost savings at the newly merged company are expected to materialise a year ahead of schedule. Management's target of a minimum £80 million of synergies by 2017-18 has now been brought forward by one year to 2016-17. The fall of Phones 4U appeared to play its part in boosting revenues (group H1 like-for-like revenue up 5%), while free warranties on products such as high-end TVs also further contributed. Economic recovery for its core UK and Irish markets also appeared to aid performance, whilst its newly separated business services division (Connected World Services) reported a doubling in pro forma revenues.
Less favourably, stores in the Netherlands and Germany are being closed, while market pressures in Spain were reported. Management noted that "Life has been tougher for our smaller European phone businesses who are strategically less able to be robust in the face of market changes and we are in the midst of restructuring and reviewing these operations."
In all, merger cost savings are being squeezed, the repositioning of its overseas operations remains ongoing, while management initiatives to improve customer satisfaction appear to be generating success. For now, with high street competition further reduced and the company remaining a potential beneficiary of the expected growth in the so called 'internet of things', analyst consensus opinion points towards a strong buy.

Read more share research from Hargreaves Lansdown

Highlights:
Group first half like-for-like revenue up 5%. Second quarter like-for-like up 9%.
Group pro forma headline or adjusted profit before tax of £78 million (2013: £60 million), up 30%. Statutory loss before tax from continuing operations £20 million (2013: loss of £27 million) after non-headline charges of £100 million.
Management now expects to deliver a minimum £80 million of cost savings by 2016-17, one year ahead of plan.
Interim dividend of 2.5 pence per share, payable in January 2015.

Negative Points:
Stores in the Netherlands and Germany are being closed. Management noted that "In the Netherlands the market proved to be much more challenging than anticipated." Pro forma headline revenue in Northern Europe in the first half was down 8%.
The group noted that "our Spanish business was negatively impacted by market pressure." Pro forma headline revenue in Southern Europe in the first half was down 15%.
Competition from the likes of Amazon will prove no less intense.
For Carphone Warehouse, concerns regarding the outlook for mobile phone sales have previously been expressed. Many consumers now possess a smartphone.

Positive Points:
Targeted cost savings at the newly merged company are expected to materialise a year ahead of schedule. Management's target of a minimum £80 million of synergies by 2017-18 has now been brought forward by one year to 2016-17.
Overall group for first half like-for-like revenues rose by 5%. Second quarter like-for-like revenues grew by 9%.
Pro forma revenue in the first half in the UK & Ireland increased by 8%. Management noted that "the business benefited from the closure of Phones 4U." The group pointed to a particularly good performance in high-end TVs, aided by a number of initiatives including free warranties.
In Spain, the company has recently started a relationship with Telefonica to distribute the products and services of Movistar in its stores for the first time.
Connected World Services (CWS), its business services division, reported separately for the first time. The business looks to leverage the company's core expertise and systems to provide solutions for other companies. Pro forma revenue of £79 million were reported (2013: £41 million) with the increase predominantly reflecting the revenue from its Samsung Experience Stores which launched in the second half of last year.
The group is disposing of non-core operations. The disposal of Virgin Mobile France completed on 4 December 2014 with net cash proceeds of £104 million.
Dixons Carphone intends to adopt a dividend policy in line with Carphone's previous dividend policy. An interim dividend of 2.5 pence per share was declared

[mike740] 18/12/2014 13:45

Investec hikes Dixons Carphone price target after interims

Maiden interim results from recently merged Dixons Carphone (DC) prompted Investec analyst Alistair Davies to raise his share price target from 395p to 465p.

Davies reiterated his ‘buy’ recommendation for the electrical and phone retailer after half-year earnings before interest and tax came in at £100 million and profits before tax hit £78 million. Both were well ahead of consensus forecasts of £79 million and £58 million.

Dixons Carphone shares gained 14.5p or 3.4% to 441p.

‘[There is] no change to full-year 2015 estimates but estimates look underpinned and we upgrade full-year 2016/17 profits before tax by 2.5%/4% respectively, reflecting earlier realisation of synergy benefits,’ he said.

‘Dividend yield is c.2% but free cash-flow increases in full year 2016 estimates potentially offer scope for further shareholder returns.’

hxxp://citywire.co.uk/money/the-expert-view-dixons-carphone-bhp-billiton-and-xaar/a790134?ref=citywire-money-latest-news-list#i=2

[mike740] 18/12/2014 13:44

Put these 3 retailers in your Christmas stocking
By Harriet Mann | Thu, 18th December 2014 - 11:38
Put these 3 retailers in your Christmas stocking General retailers rely on consumers having a little bit of extra cash in their pocket, especially as the lights and the tinsel go up before Christmas. This is make-or-break time for the high street, and after a slow autumn due to warmer weather, they have a lot of catching up to do.
UBS now expects faster growth in UK households' disposable income next year, fuelled by a 50% slump in the price of oil. Although bad news for oil producers, consumers benefit from lower petrol prices and utility bills. Food is also getting cheaper and fixed rate mortgages have also fallen to record lows. That's why UBS pencils in household cash flow growth of 4.5% in 2015, versus this year's 3.6%. That must spell good news for the high street.

Of course, political risks are looming. As General Election fever takes hold, more focus will be drawn to proposals to tackle the deficit and its impact on consumer confidence. And sterling hasn't been as healthy lately, hit by delays to possible interest rate hikes. "Total reliance on lower oil prices could also be risky," says the broker. "We believe it could easily reverse."

Still, over Christmas, UBS prefers the hard-line retailers, especially given the impact of warmer weather and higher operational gearing. Their top picks include Home Retail (HOME), Dixons Carphone (DC.) and Debenhams (DEB).

Both Home Retail and DC also have robust self-help strategies to supplement the macro tailwinds. In the clothing space we think Debenhams offers a degree of resilience to the increased promotions seen elsewhere, albeit off a very low base.
However, the slow start to the period is expected weigh on both Marks and Spencer and Next (NXT), with other clothing retailers likely to struggle, too. Non-food sales at M&S (MKS) are set to fall by 4% in its third quarter and UBS has shrunk its full-year pre-tax profit forecast by £10 million, although the medium-term gross margin upside looks intact.

Next has remained aloof again with its focus on full price sales and service levels, and we think full-year 2015 should be stable. However, there could be more cautious comments and the first half full-year 2016 outlook on 30 December given tough comps, and we rein back our expectation of profit growth here by around 4%.

[mikepompeyfan] 18/12/2014 13:31

UK retail sales rose at their fastest annual rate in more than 10 years in November, thanks to the effects of Black Friday, official figures show.

Sales rose 6.4% compared with November last year, the highest annual increase since May 2004.

On a monthly basis they rose by 1.6%, with growth in all areas for the first time since December 2013.

US-style discounts for Black Friday took off in the UK this year, with stores seeing record sales.

Electrical goods sales jumped 32% from a year earlier and sales at department stores were up 15%, both of which were the biggest increases since records began in 1988, the Office for National Statistics said.

Online sales increased by 12.9% compared with last year.

However, last year Black Friday fell in December, making the comparison more pronounced.

Lower prices
"These numbers verify the shift in spending patterns happening in the final quarter of the year. Black Friday led to unprecedented demand," said Natalie Berg from Planet Retail.

"What we don't know is to what extent did this simply bring spending forward," she continued. "I suspect it slowed in the first couple of weeks in December."

Average retail prices fell by 2% compared with last year, the largest fall since August 2002, mainly due to the large drop in petrol prices.

Prices at food stores were also lower, recording their largest fall in since June 2002.

"The decline in store prices reflects fierce competition in the retail sector and provides further evidence that inflation will fall below 1% in the coming months," said David Kern, chief economist at the British Chambers of Commerce (BCC), a group which represents businesses.

[mikepompeyfan] 18/12/2014 13:31

UK retail sales rose at their fastest annual rate in more than 10 years in November, thanks to the effects of Black Friday, official figures show.

Sales rose 6.4% compared with November last year, the highest annual increase since May 2004.

On a monthly basis they rose by 1.6%, with growth in all areas for the first time since December 2013.

US-style discounts for Black Friday took off in the UK this year, with stores seeing record sales.

Electrical goods sales jumped 32% from a year earlier and sales at department stores were up 15%, both of which were the biggest increases since records began in 1988, the Office for National Statistics said.

Online sales increased by 12.9% compared with last year.

However, last year Black Friday fell in December, making the comparison more pronounced.

Lower prices
"These numbers verify the shift in spending patterns happening in the final quarter of the year. Black Friday led to unprecedented demand," said Natalie Berg from Planet Retail.

"What we don't know is to what extent did this simply bring spending forward," she continued. "I suspect it slowed in the first couple of weeks in December."

Average retail prices fell by 2% compared with last year, the largest fall since August 2002, mainly due to the large drop in petrol prices.

Prices at food stores were also lower, recording their largest fall in since June 2002.

"The decline in store prices reflects fierce competition in the retail sector and provides further evidence that inflation will fall below 1% in the coming months," said David Kern, chief economist at the British Chambers of Commerce (BCC), a group which represents businesses.

[mikepompeyfan] 18/12/2014 11:36

Job cuts for duplicated head office positions makes sense.
Have also said other jobs created due to growth.
All good news.