Brown (n) Share Discussion Threads

[nw99] 07/5/2016 07:35

Sharewatch today buy the dip

[opodio] 27/4/2016 20:38

N Brown boss: good stock management will mark retail winners and losers
21 APRIL, 2016 BY BECKY WALLER-DAVIES

COMMENT
hxxp://www.retail-week.com/sectors/fashion/n-brown-boss-good-stock-management-will-mark-retail-winners-and-losers/7006803.fullarticle
N Brown chief executive Angela Spindler has said that stock management will sort the winners from the losers in fashion retail amid tough conditions.

Effective stock management has become more important than ever for fashion retailers as they combat a variety of challenges ranging from unhelpful weather to an apparent trend in consumer spending away from apparel into leisure and other categories, as recently flagged by Next boss Lord Wolfson.

Alongside the fundamental necessity of appealing product, Spindler said: “For me, stock management is the most important thing – it’s what will differentiate winners and losers going forward. Excess stock means drastic discounting for protracted periods.”

So N Brown is recalibrating its attitude towards stock and discounting.

Because of a shift towards online clearance, N Brown closed its 18 clearance stores in the fist half of the last financial year and instead launched a website, Crazy Clearance, to shift old stock.

The retailer said: “We are developing new online clearance tools, and will be taking the opportunity to leverage these capabilities, and de-risk our balance sheet, by reducing our aged inventory position during the course of full year 2017.”

N Brown’s focus on better management of stock levels is being replicated elsewhere in fashion retail.

[modform] 27/4/2016 20:02

No, invesco are dumping, read it again

[opodio] 26/4/2016 15:42

Oh yes, they have now bought almost 12% of the company

[ali47fish] 26/4/2016 15:39

and invesco are adding to their holding?

[ali47fish] 26/4/2016 15:36

is shore cap the house broker and why is this report published today when the update was a number of days ago? this sounds positive and the link to the ft above is very negative so none the wiser as to waht to make of it?

[opodio] 26/4/2016 14:53

Shore cap note for those interested



A final dividend of 8.56p is proposed, so flat year-on-year at 14.23p, as we had expected. The Group ended FY2016

the (February year-end) with net debt of £289.7m (SC forecast £290m), a c£43m increase yoy in what was a further

year of significant capital investment for the group, with capex spend >£58m. Accordingly, net debt/EBITDA at the

year-end rose to 2.5x (from 2.1x), or 2.6x on a lease adjusted basis.

Robust sales growth driven by Power brands

N Brown has delivered a robust sales performance, in our view with Product sales up 4.1% and Financial Services

income up 2.1%, which included a return to growth through H2 FY2016 when income increased by 4.5%. Product

sales continues to be driven by the focus upon power brands, with Simply Be revenue up 15.6% yoy to £103.9m and

Jacamo up 14.6% to £62.8m, though both run rates slowed through H2 from +20% in H1. We deem such sales

growth, from reasonable base levels, to be strong and encouraging for the group.


The USA reports a maiden US$ profit contribution

In the USA, total sales increased by 29% to £14.3m (+20% in constant currency). FY2016 losses reduced

significantly from £2.5m to £1.0m in the year, including a maiden US$ profit in H2 of $0.2m, an encouraging

milestone in our view.

The product gross margin towards the top end of guidance

Product gross margin declined c25 basis points (bps) to 56.2% which is at the upper end of management’s revised

guidance of “minus 75bp to flat”, whilst the Financial Services gross margin increased by c15bp to 54.6%.

[salpara111] 26/4/2016 14:25

Well, that was a rather sobering read!
I have had this one on my watch list for ages but felt that the business was always struggling just to tread water.
The implications of FCA regulation in terms of how it affects its highly profitable credit customers is all rather negative.
I will just keep it on the watch list for now.

[r ball] 25/4/2016 22:21

FCA oversight of credit deals andterms. problem ahead?

[nw99] 22/4/2016 18:11

Nice dir buy buy the dip

[dlku] 22/4/2016 14:24

tion
number of shares held
by each of them
7. ANGELA SPINDLER 8. ACQUISITION OF SHARES
9. Number of shares, debentures 10. Percentage of issued class acquired (treasury shares of that class
or financial should not be taken into
instruments relating account when calculating percentage)
to shares acquired
18000 0.006%
11. Number of shares, debentures 12. Percentage of issued class disposed (treasury shares of that class
or financial should not be taken into
instruments relating account when calculating percentage)
to shares disposed
13. Price per share or 14. Date and place of transaction
value of transaction 21 April 2016
GBP2.709 LONDON STOCK EXCHANGE


Spindler has bought £50,000 on buying shares

[r ball] 21/4/2016 17:49

rubbish. avoid

[cwa1] 21/4/2016 08:37

The final proposed dividend of 8.56 pence per share, subject to approval by shareholders, will be paid on 29 July 2016 to shareholders on
the register at the close of business on 1 July 2016.

[opodio] 21/4/2016 08:29

Dividends

The Board proposes a final dividend of 8.56p, flat year on year, taking the full year dividend to 14.23p, also unchanged on last year.



When do we receive this dividend. must be going ex soon?

[opodio] 21/4/2016 08:27

Forecast eps of 24p
Dividend of 14.2p

If you collect the next final and the next years is a dividend of 20p on an 18 month view.


PER of 11x versus BOO on 40x

[monty9] 21/4/2016 08:18

What spooked me was the comment about the IT project being within budget and on time yet giving guidance to expect "bumps in the road." Does that mean it doesn't work as expected? To me that means the project is not on time, or that further work will need to be done to 'smoothen out the bumps', which again, to me, means it's not on budget.

They are clearly guiding for some bad news but the statement they have put out is meaningless at best or even self contradictory. We might as well be told "there's something nasty in the woodshed". I can't imagine how they could have put out a statement creating more damage.

Can we please have a clearer statement explaining what problems are known or are anticipated and some indication of the anticipated operational or financial cost. Alternatively if in fact none are currently known of please state clearly that none are currently known of but that management is unable to assure stakeholders that none will be incurred, given the nature on large IT projects.

[brahmsnliszt] 20/4/2016 17:56

Went long smalls this morning at 270.50 for a turn.Daily's on a month chart way oversold.

[zcaprd7] 20/4/2016 17:50

Profit warnings come in threes, chart looks awful, new low territory, management already preparing their excuses. Either IT system or brexit, take your pick. Where's her chutzpah now? And all this Northern talent working on her IT? I hope she doesn't survive this because she is a female CEO... She's surprised by the share price reaction! I bet after her share purchase! Not gloating, but glad I sold out of this...

[zcaprd7] 20/4/2016 15:26

I think the CEO needs to go. She's been doing lots of powder puff PR stuff the last few months rather than sorting this mess out...

[nw99] 20/4/2016 13:06

Transitional period , good divvy buy and hold

[ed 123] 20/4/2016 12:29

Management seems to be moving in the right direction, but big change takes time and costs money.

Added a few, myself. NAI.

There are costs of Fit 4 the Future and cost of the Shaw warehouse extension; both with benefits still to flow. Also, the Group has been hit by the subdued market and the impact of weak sterling.

Market reaction? May be fair enough? I'm not too bothered about today's reaction, more concerned with where the share price is likely to be in 12 months + time.

No guarantees, of course, but I think there's a good chance we will see both the environment and the Company in a better position 12 months + from now.

IF things go well, there may be a smooth roll out of Fit 4 the Future, continuation of BWNG's strong online revenue growth (up 15% for the reported year), a reduction in exceptional costs, and stronger Sterling.

[nw99] 20/4/2016 11:59

Added more

[lomax99] 20/4/2016 10:42

An over-reaction, not great. I have added more, and will draw some comfort from a dividend yield of just under 5.2%.