| Date | Subject |
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26/11/2020
11:23 | zangdook: Interesting - Chelverton UK Dividend Trust Plc / MI Chelverton UK Equity Income picking up 4.99% of a company which has said it won't be paying dividends for a few years yet.
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26/11/2020
07:41 | purple11: Shoe Zone sells 16 million pairs of shoes per annum at an average retail price of GBP11.
thats £176m in revenue each year
a 12m revenue reduction looks like a drop in the oceon.....
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23/11/2020
15:43 | tewkesbury: I would think SHOE's high street sales will pick up pretty fast once people start being vaccinated next month, as most people will need new shoes after a nine or ten month break from shopping for all but food; and their website will have picked up extra customers this year, who may continue to shop online, which could mean more higher margin revenues going forward and customer retention helping to offset some store closures where needed. Also after Brexit, we may see a reduction or removal of VAT on footwear, which could further help sales and/or margins (if SHOE don't pass all those savings on to customers).
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23/11/2020
14:42 | boonkoh: Took a while but investors are twigging on that this traded at 180p+ pre covid!Obviously not getting back to that same level. High Street footfall will still be permanently down when it recovers, and it's strong balance sheet is less strong now. But no reason why 100p isn't achievable IMO.Only threat is Clarks just came out of CVA. Not closing any stores unfortunately, and they're moving to turnover based rents. So they'll have less rent cost than Shoe per store. The good news is that Shoe average lease length was less than 2 years at the start of this year, so 25% stores could be exited by end of 2020, another 25% by end of 2021, and they've already secured some rent reductions.Business rates cliff in March is the next thing to look out for IMO.
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23/11/2020
09:40 | nesquikme: About Shoe Zone
Shoe Zone is a Town Centre, Retail Park and Digital footwear retailer, offering low price and high quality footwear for the whole family.
Shoe Zone operates from a portfolio of around 460 stores and has approximately 3,000 employees across the UK.
The store portfolio consists of over 410 high street stores containing the core Shoe Zone product range and 50 larger Retail Park units which also feature brands such as Skechers, Hush Puppies and Kickers.
The website shoezone.com, combined with the store network, ensures a full multi-channel offering for great customer service.
Shoe Zone sells 16 million pairs of shoes per annum at an average retail price of GBP11.
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18/11/2020
11:14 | someuwin: Taken a few of these.
Like the fact that Paul Scott (Paulypilot) has been buying as he said on Monday...
"Shoe Zone (LON:SHOE) (2.7%) - I’ve been building up a long position here recently. It’s another recovery story. Historically the company has been highly cash generative, and management have big shareholdings. It has incurred heavy losses in 2020, but looks financed adequately to survive, and come out of the other side. Tiny market cap now, which I think looks too low, recovery not yet priced in."
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18/11/2020
10:37 | boonkoh: Hah yeah right, SHOE linked to Boo!There's no brand equity in SHOE. And BOO is only interested in buying brands, not a sprawling network of retail stores.
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30/10/2020
12:26 | edmundshaw: My thoughts too, @PTGInt.
In some ways it is as SHOE has turned into an early stage business, looking for growth and cash flow and putting dividends firmly in the future. But it is not, has a vast estate and no reason that it might not recover very well in one or two years' time. If rates are also rebased, why could dividends not restart in 2022/23, for example?
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28/10/2020
08:33 | owenski: This was only worth holding as an income stock, they sell ghastly cheap plastic shoes and their shops smell of chemicals from their plastic shoes, but they ran the business well enough and made money which supported the divi.
also, there are other budget shoe chains out there offering better product, current circumstances are just a perfect storm of Covid and rates and now pension liabilities.
As said, it's now a bargepole stock.
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09/1/2020
19:53 | thorpematt: The PD really is of little concern given its size. The cash pile would comfortably wipe it all out.
The write down in property is prudent and tax-sensible but of no effect to the cash earning power.
Given the underlying ability to spin off close on £10m PBT annually (despite hefty ongoing dividends) it's hard not to see the value of a company which current has an EV of less than £70m; a growing online presence and a 23% drop in rents. The average 2.1 year lease means that these will continue to benefit.
Many will look at the 7% yield and see that this year's cover is deficient but the headline figure misleads against normalised earnings which comoftably allows the Board to be confident in maintaining the dividend througout its investmentment in new stores and formats.
As Fincap noted in their morning note:-
"A refreshed executive team (with the previous CEO returning to the role and the COO moving to the Interim Executive Chairman role – together, they own 50.01% of SHOE), has significantly stepped-up the pace and vigour of executing the operational strategy. Management revitalisation therefore looks an interesting juncture in the SHOE equity story. We believe that the restored positive trading momentum of the last few weeks of FY19 and the encouraging FY20 outlook statement provide evidence to support our view of a reinvigorated focus already delivering benefits."
and as Paul Scott noted in his report yesterday:
"My opinion - of the 2 retailers I've looked at today, Topps Tiles (LON:TPT) and Shoe Zone (LON:SHOE) my view is that SHOE is by far the better bet at the current modest valuation. Its >7% dividend yield looks great, and should be sustainable.
I see the dip in earnings this year for SHOE as probably being a temporary glitch, rather than a more worrisome trend. There's plenty of positive stuff in the narrative today, to imagine that profits should stabilise or recover in future.
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PLUS1
