Marks And Spencer Share Discussion Threads

[ignoble] 07/11/2018 14:59

My 19 year old has bought a few bits from Marks
Sweaters and the like
Admittedly that he is just one out of 3 million or so

[philanderer] 07/11/2018 14:27

The big stat for me was food sales -2.9%


"Marks & Spencer May Close More Stores Than Planned, CEO Says"






"CEO Steve Rowe blames ageing customer base, weak supply chain and tired-looking stores

[poikka] 07/11/2018 14:13

Not a bad report, and nice to see Home and Clothing only slipping 1.1% LfL - a better result than Primark. They're doing the right things and not before time.

[philanderer] 07/11/2018 14:10

Geoff Ruddell at Morgan Stanley .


Although disappointing, we think downgrades on this scale pose minimal risk to
the dividend (which has been maintained in FYH1), and it remains very well
supported by cash flows (the group generated free cash flow of £241m in FYH1
vs £105m in the prior year and is on course, on our analysis, to pay down more
than £200m of debt this year as well as fund its dividend).

- Overall we think this statement paints a picture of a group undergoing radical,
and very rapid, change but where this change is yet to feed through into
improved trading performance. However, with the shares yielding a (very secure)
6.3%, we think shareholders are being well remunerated for their patience.

[philanderer] 07/11/2018 13:43

M&S says it requires 'significant further change' as sales fall

[debsdowner] 07/11/2018 13:09

Marks margins over 5% and rising>

"this business still appears to have a number of qualities that place it ahead of some big high street rivals. An underlying operating profit margin of 5.3% isn’t bad at this stage. Although lower than in some previous years, I’d expect this figure to rise if M&S can develop its online business."

Debenhams ,margins forecast only 1.1%

Recovery imo and as I said earlier punished this morning unduly. The THF article agrees:

[freedom97] 07/11/2018 11:55

Don't forget, goes 'XD' Thursday next week. ;o)

[blueteam] 07/11/2018 11:40

view from market trader - mopping up the small sells and later will see the big buy traders in. Will end above £3 is the call. We will see.

[careful] 07/11/2018 11:36

Looking at ABF results.
Primark in particular.

from a revenue of £7.5bn they generated £840m operating profit.


Archie Norman and Rowe know what they must do.
their '£350m at least' cost saving target is a start.
They must match slicker rivals.

[careful] 07/11/2018 11:23

How can any serious investor mention Debenhams on this thread.
DEB are virtually worthless.
They were taken over by private equity, stripped of assets, loaded with debt, then the carcase was dumped back onto the market.
Net assets of DEB after stripping out intangibles is less than zero.

MKS is a serious company with potential.
Market seems ruthless and irrational.

Ocado is roaring ahed today.
Crazy, take a long term view.

[debsdowner] 07/11/2018 10:50

Press been rather brutal good cash-flow and if Debenhams hits the wall which they may Marks will gain.

Still a risk factor but profits up despite slip in sales. Fair yield a positive.

Rumour was the company would split the divisions up which was denied this morning and I think that is the right decision.

No position.

[montyhedge] 07/11/2018 10:40

Disappointing I thought, revenue tells the story.

[ignoble] 07/11/2018 10:29

Makes sense to me

[diku] 07/11/2018 09:59

Trimmimg the divi news would counteract good news on restructuring progress...you can always increase the divi later on a firm footing or a special divi if sales improve...better to under promise and over deliver than the other way round...

[cwa1] 07/11/2018 09:43

FWIW, I've just taken my first holding in MKS for aeons(at 290p). Bit of a punt obviously but those pre tax figs look like a move in the right direction and the chunky capex lowering also look positive. Clearly plenty of other stuff to worry about but hoping those two positives alongside a stabilising of the ship/not too crazy a Brexit settlement will mean a more positive medium term outlook. Rose tinted punt I concede but fingers crossed.

[careful] 07/11/2018 09:42

The divi costs about £300m.
they can afford that comfortably.

The civil service culture is being attacked, a bloated organisation.
Stores are being closed.
There is so much to save, although closing stores cost in the short term.

A forward PE of around 10 and a dividend of 6%.
That is before any improvements.

It is time to see the potential.

[freedom97] 07/11/2018 09:36

By not trimming the divi, it shows the company believes there is no need to, all is on track. If they did trim the divi that would be a warning, that all was not well imo.

[diku] 07/11/2018 09:26

So the figures are a bit muddy...hence the muted reaction?...market not convinced...by trimming divi market would see it as tight control of cash whilst restructuring going on...instead they are dishing out cash...

[freedom97] 07/11/2018 09:24

Which retailer do you suggest would be good for a merger? Waitrose?

[philanderer] 07/11/2018 09:24

I don't think that they could afford to cut the dividend . Most institutions just holding for the income . Any capital gain here will take years.

A cut in the divi and the shares would have been savaged.

[diku] 07/11/2018 09:20

Can anybody listen to live conference call?...hope a journo ask CEO if Mks would consider a possible merger with another retailer...

[freedom97] 07/11/2018 09:18

diku, you have to take into account store closures.

[diku] 07/11/2018 09:15

And Sales figures?...

[freedom97] 07/11/2018 09:12

Net debt down -12.3 %
Profit after tax up 6.1%,

They are certainly doing something right.