Shoe Zone Share Discussion Threads

[edmundshaw] 31/10/2024 21:56

Shoezone will have added costs. But so will competitors. Ditto with container prices too to be fair (longer term rather than short). And everyone needs shoes. So prices will have to go up. Hence inflation. OK that might reduce real terms national debt but will also raise real interest rates on it... not a fan of most of the budget.

I rate the management here, so happy to hold and add on serious weakness.

[chinahere] 29/10/2024 22:32

"Now its do just enough hours to qualify for UC"

The crazy thing has been that as a couple of adults with kids you would always get £20k+ as a minimum - it was really just a personal choice of whether you worked for it or not.

Shoezone is a good business and I am hoping margins will be protected going forward.

[bareknee] 29/10/2024 21:37

Fenners - more importantly, how material to Shoe Zone are the added costs of NI and minimum wage and, if they are material, can they be passed onto consumers to protect margins ?

We can do next to nothing about changing govt policy, but we can make a judgement on where to invest.

... and before anyone asks, no I'm not short on Shoe Zone, but I do have a lot less shares than I did 12 months ago. The profit warnings, which were partly blamed on increases in minimum wage which had been signalled months previously, destroyed a lot of the faith I'd previously had in the management here.

[fenners66] 29/10/2024 21:23

chinahere whilst I understand and approve of the govt reducing the in work benefits bill (benefits should be a safety net not a lifestyle choice) the method of adding wage inflation to the economy and punishing employers with red tape and making inefficient apprentices even more expensive - will not help.
There will be some savings - until they push up benefit rates as well - but it will likely lead to more unemployable at
the margins and thus there will be "out of work benefits " instead.

Better to just go straight to the problem and make people find more work - even work they feel is beneath them.

The solution used to be get a second job - I did it.
Now its do just enough hours to qualify for UC

[fenners66] 29/10/2024 21:17

NLW to rise by 6.7%
likely NI costs to add to that.
We know that is introducing wage inflation
and the bending over and taking the Unions demands
will mean massive over inflation public sector pay
rises to follow.
Then the govt are going to add billions to debt just in time
for inflation to add to gilt yields
No joined up thinking , how soon before they repeat
history and go cap in hand to the International Monetary Fund?

[chinahere] 29/10/2024 19:41

The government has been propping up low wage work for years through benefit subsidy.

By continually raising the minimum wage they are trying to reduce those 'in work' benefits provided by Universal Credit.

[bareknee] 29/10/2024 12:42

It's expected that the minimum wage will be raised by about 6% in the budget tomorrow. If it happens, hopefully this time the board will read about it and it won't come as a shock to them when they have to start paying it next year.

[fegger] 29/10/2024 11:17

The price has been under a lot of pressure recently. When I look at selling I look at the dividends paid since the pandemic.

2022/2023 17 pence Based on today price of 142 = 11.97%
2023/2024 17.4 pence Based on today price of 142 = 12.25%

Still large holdings over 89% held by family. They will want to continue this income.

Could be hit tomorrow by increased NICs. But news is that shipping costs are normalising which will help them.

So I havent sold. On balance the income and the tight holding makes the outlook positive enough to hold.

[hpcg] 25/10/2024 21:03

I sold out this week. I can always come back. I was hoping to pick the cyclical rebound but it isn't there yet.

[thecroots] 25/10/2024 19:27

Container prices really falling nicely now...

[disc0dave46] 22/10/2024 11:38

By my notes this is the fourth consecutive profit warning. Only 5% lower on adj pbt so circa 15p eps, it's highest PE for the last 5 years or so has been just over 10x, so looking a bit toppy IMO.

[martinmc123] 22/10/2024 10:11

SHOE – Shoezone
2*
The high Street retailer of low cost footwear issued a pretty soft sounding FY update this morning. Group revenue reduced by 2.7% to £161.3m (FY 2023: £165.7m), store numbers, in line with plan, reduced to 297 (FY 2023: 323), Product margin increased to c.62.8% (FY 2023: 62.1%) and adjusted profit before tax expected to be not less than £9.5m (FY 2023: £16.5m). The first 3 highlights noted were pretty average, PBT down by over 40% is obviously pretty soft and explains why the share price is down 8% so far today. The reason for the profit fall given was due to the weather impacted second half sales performance in conjunction with year-on-year increases in the cost of energy, depreciation, National Living Wage and containers prices in the second half. The Group’s balance sheet softened a ...

...from WealthOracle

wealthoracle.co.uk/detailed-result-full/SHOE/897

[18bt] 22/10/2024 09:48

4% yield is based on sharepad consensus forecast for total 2024 divs of 6.5p i.e. assumes 4p final and no special.

[niklol] 22/10/2024 09:24

Hope they have a busy few months now

[fenners66] 22/10/2024 08:27

Final dividend to be decided and announced with the full results in January .... so could be anything

Given how much the cash has decreased it points to a lower final , perhaps.

[zangdook] 22/10/2024 07:20

How do you get yield of 4%?
2.5p interim, and last year's final was 8.9p (ignoring the 6p special).

[bountyhunter] 22/10/2024 07:18

FY down due to poor summer weather, one positive offers encouragement..

"our key Back to School period traded above expectations at the end of the year."

[18bt] 22/10/2024 06:39

Just about in line with downgraded expectations. Adjusted EPS of c16p so PER of exactly 10x and yield of c4%

[niklol] 19/10/2024 14:14

Trading update due next Tuesday 22nd Oct

[niklol] 20/9/2024 17:52

Nice end to the week for Shoe

[niklol] 20/9/2024 17:52

Nice end to the week for Shoe

[devonlad] 20/9/2024 07:50

Absolutely stonking bowl now, resistance round the 215p mark.

[chinahere] 18/9/2024 10:03

The price for the containers was around $6000 when they released the July profit warning to £10m. Now it is nearer to $4000 there must be some uplift.

£2 per share is still only a £93m market cap. on a sub 9 P/E.

[bountyhunter] 18/9/2024 09:44

What's going on here, that's quite a jump this morning! Related to the above?

"Drewry’s World Container Index decreased 13% to $4,168 per 40ft container this week."