Sainsbury (j) Share Discussion Threads

[loganair] 28/4/2022 11:38

39% of Sainsbury’s sales online in latest full-year – including 17% of grocery and 80% of Argos sales.

The retailer says that Argos is now a more profitable business, and it aims to save at least £250m by integrating the Sainsbury’s, Argos and Habitat supply chain and logistics operations. Five local fulfilment centres opened during the year, and nine more are planned this year.

Habitat products are now available online via its own website, via the Argos website and in 600 Sainsbury’s shops.


John Moore, a senior investment manager at Brewin Dolphin, said: 'Broadly speaking, Sainsbury’s has posted a good set of results for the past 12 months, but all eyes are on the impact of inflation in the year ahead.

'The supermarket expects the higher cost of living to hit profits and it will have a difficult balance to strike between helping customers, upping staff pay, and maintaining its commitment to shareholders.

'But, with Argos and Habitat to lean on, the business has options to help it through this tricky period in a highly competitive grocery market. The self-help measures taken in recent years on debt reduction and cost management have also strengthened its balance sheet.'

[unastubbs] 28/4/2022 11:12

he was buying initially in the 1.80s, idk his average but i reckon he's still ahead

[chiefbrody] 28/4/2022 10:37

How much of a paper loss is that Cz guy sitting on!

[chiefbrody] 28/4/2022 10:36

Struth i wanted to see 300p so i could dump the rest of my shares. At this rate though, i'll end up buying back at 200p before long and then wait for the slow climb back to 300p...

[spob] 28/4/2022 10:25

Plat

Only price matching on very few select items in each category.

It's just normal retail propaganda.

[tuftymatt] 28/4/2022 10:23

Yeah all the big boys are now as it's a case of needs must.

That's ok though IMO as there is money to be made still and without customers they have no chance. The big boys in this sector have the firepower to compete even though it's somewhat of a mindset shift.

[plat hunter] 28/4/2022 10:19

I saw an advert on telly the other day... Sainsburys price matching Aldi on essentials.

[spawny100] 28/4/2022 10:17

If money is tight surely the more expensive supermarkets will suffer? But then it's a very good dividend. Hmmm.

[tuftymatt] 28/4/2022 10:17

Agree Spob, move Argos to online and use the space to create some sort of in shop challenge to the likes of Aldi and Lidl.

[tuftymatt] 28/4/2022 10:15

Well I have taken a position here today as I hold TSCO for the divi and think this complements that hold.

TSCO did recover, as mentioned above, so I think this one can do the same now that the facts are out there. It's going to be tough for nearly everyone over the next few years but these big players can ride out the storm meaning buying on the dips and holding long term should prove to be an ok decision IMO.

[spob] 28/4/2022 10:13

How long before they start closing Argos stores within Sainsbury's ? (or try to flog them off to someone else)

It certainly looks like closing the stand alone Argos stores is slowly killing the brand. Just as I predicted.

Argos sales down 20% for Q4

[spob] 28/4/2022 10:02

Final results (formatted correctly)

[loganair] 28/4/2022 08:47

As inflation is running at a much higher level then the increase in sales revenue, means Sainsbury's are selling less groceries and products in general.

[unastubbs] 28/4/2022 08:30

investor/analyst webcast 9.30 today

[philanderer] 28/4/2022 08:30

Yes, it's in my income portfolio so happy to hold.

[unastubbs] 28/4/2022 08:27

disappointing to say the least - how can any of this be a surprise to the market given the mood music of the last month or so?? and then the dividend is increased above consensus (fy of 12.2 had been anticipated). the PBT range for 22-23 is still decent especially when one remembers that 21-22 had a big covid boost on the delivery side... however it is what it is and I am content with what management are doing and as an income investor will stick with it. GLA

[dipa11] 28/4/2022 07:17

Shorting will be closing soon 3% down Good luck

[philanderer] 28/4/2022 07:05

In for a good old kicking.

[dipa11] 28/4/2022 06:54

No wonder as Ukraine war created price hike and that will affect the profits margin but still guide line give clear picture and don't forget the dividend payment Good luck

[unastubbs] 28/4/2022 06:32

final div raised to 9.9p (13.1p fy = 5.4% yield on yday's close) payout ratio increased from 53% to 60%.

outlook: "we expect underlying profit before tax will be between £630 million and £690 million in FY 2022/23. This is below the £730 million reported in FY 2021/22"

given what happened with the tesco results this must have been widely expected and sainsburys shares have fallen since those results, while the tsco share price has recovered. i'm hopeful that the increased dividend will win out over the 'profit warning' - but the market likes to focus on the negative with these so let's wait and see. the dividend yield is very high and i am very happy to hold here. would consider buying more if it fell say 10% from here.

[unastubbs] 28/4/2022 05:36

buckle up!

[loganair] 27/4/2022 19:55

Analysts at broker Jefferies recently upgraded their rating on the shares from hold to buy, setting a 300p price target. At 236.7p, the shares are currently trading near their year lows. As such, they are a long-term buy on strong trading and bid hopes.

[loganair] 27/4/2022 19:54

Sainsbury's shares: results look ahead:


Sainsbury (J) PLC unveils full-year results on Thursday this week. The bullish supermarket operator upped its full-year earnings guidance at its third-quarter trading update in January and announced upbeat Christmas trading.

But in the light of the cost of living crisis and pressure from higher input costs, investors will want to know if the supermarket chain is still just as optimistic about the future.

While rival Tesco recently posted its biggest profits for years, it also warned that inflationary costs would hit earnings, with profits expected to be lower this year.

Analysts forecast that Sainsbury’s will return to profit in 2022, with the supermarket chain hiking its earnings guidance to underlying pre-tax profits of “at least £720m” in the year to March.

Last year Sainsbury’s made a pre-tax loss of £261m after the chain was impacted by £485m of pandemic-related costs, which wiped out 39% of underlying profits. These charges related mainly to the cost of making its stores and operations Covid-19 safe.

However, it is likely to include a similar warning about rising costs and pressure on margins as Tesco.

Another issue for the supermarket chains is that they are struggling with a lack of staff, partly driven by Covid-19, and rising wage costs. More staff are needed for packing because of the increase in online sales. Both Sainsbury’s and Tesco’s recently increased rates to £10 an hour.

In Tesco’s case, this has added another £200m to wage costs. Sainsbury’s says it has invested another £100m in its staff rewards.

[loganair] 27/4/2022 19:46

The latest figures suggest that online grocery sales fell by 15% in the opening months of the year, compared to the same time last year. Kantar data suggests that half a million households that ordered online during the third UK lockdown are no longer doing so.