Shoe Zone Share Discussion Threads

[tanneg] 22/3/2017 19:55

Brantano now in administration

[rhomboid] 22/3/2017 11:36

Ok Found the background, Brantano went bust last year, administrator sold 81 stores to newco , that is now struggling, looks like all sites are retail park so big box possible, or run as a separate fascia with slightly different more upmarket position, all logistics and buying and supporting functions could be handled by Shoe , both co.s are Leicester based so integration would be straightforward, could be v.intersting

[tanneg] 22/3/2017 11:14

Found this - doesn't look like its a done deal yet:-

"The bidding war for Brantano has escalated as footwear retailer Shoe Zone submits a bid to buy out its rival, according to Sky News.

Shoe Zone joins Pavers and Edinburgh Woolen Mill as potential new owners for the ailing retailer, which filed a notice of intention to appoint administrators last week.

A deal is expected to be made by the end of the week, meaning Shoe Zone is likely to be one of the final bidders for the company.

The bid for Brantano, which is valued at around £88 million, is a bold move for Shoe Zone off the back of store closures and revenue falls last year.

Alteri, which owns Brantano, also announced the imminent administration of its sister company Jones Bootmakers, with potential job losses for both companies topping 2000.

Alteri has stated that has confidence a buyer will be found for both."

[rhomboid] 22/3/2017 11:07

Anyone got a link , I can't see an RNS?

[edmundshaw] 22/3/2017 10:33

Hm. Interesting. But I am not going to pass judgement till I have investigated further.

[bookwormrobert] 22/3/2017 09:59

Not sure I like today's news - this might not be the moment to be spending a lot of money buying up a bust rival!

[clocktower] 22/3/2017 09:49

Could also be a worrying one.

[masurenguy] 22/3/2017 09:47

Interesting development !

[edmundshaw] 27/2/2017 19:07

Just divi and tip reactions. Nothing fundamental going on, no recent news events to trigger the fall. If it drops further, I use my dividend cash to add more! :-)

[danpollard] 27/2/2017 18:02

Downward trendline since Feb 2015 is still in play. Drop to £1.25 could be on the cards short term. I'm not too worried though, plenty of value, great divis, growth from out of town retail shops and third party shoes and its majority owned by the founders.

[fenners66] 27/2/2017 17:18

To be more definitive I meant local business rates for shops

[rhomboid] 27/2/2017 16:54

Hi fenners66
I read that part of the RNS as relating to current actions post currency moves, i.e. Keeping price point and margin stable by more direct sourcing and bringing in other ranges purses handbags etc.
We'll get more detail in the full year release shortly anyhow, I'm attributing recent moves to short term divi players and tip induced numpties..

[fenners66] 27/2/2017 16:47

rhomboid - the pertinent part of my question was

" the impact was not flowing through to the last accounts."

So I noted the comment about supply chain but that was historical - the effect of slumping £ was yet to be seen and quantified.

I am guessing that the market suspects margins have fallen and despite the magazine related tip and rise there is still underlying worry here , hence the rapid fall back and even further.

My guess also now would be that rate rises are being factored in which may also lead to profit erosion hence further falls.

For me its a wait and see.......

[rhomboid] 23/2/2017 11:21

From the results they seem to be managing well, as margins are going up;

"We remain committed to offering our customers the best value possible and have maintained key price points for our Core Value Lines despite difficult currency headwinds. Along with our low prices we have increased the value proposition by extending the number of lines in multi-buy deals (e.g. '2 for £8'). This, along with range enhancements has improved average transaction value by 5% during the year. We have continued to increase our direct sourcing and as a result, footwear orders placed directly with overseas factories increased to 72.2% (2015; 62.1%) of total footwear orders. Working closely with our source of manufacture has helped maintain gross product margins as well as improving communication and control across the supply chain."

[fenners66] 23/2/2017 10:37

I was keeping my eye on them as a potential hi yield candidate, looked at the rise over the last few days and thought I had missed the boat. However I had held off pending some visibility over the effect of the declining pound.
I guess that they import the majority of the shoes, and the impact was not flowing through to the last accounts.
Any thoughts on the potential impact?

[slopsjon2] 23/2/2017 09:37

Correct. Sharescope has the divi wrong.

[masurenguy] 23/2/2017 09:31

Final dividend is 6.8p plus special dividend of 8.0p = 14.8p

[slopsjon2] 23/2/2017 09:30

Isn't the dividend 3.5p final and 8p special today so 11.5p total?

[mortimer7] 23/2/2017 09:29

Just spotted these down by 21p this morning, of which the dividend is responsible for 14.8p. Presumably the rest due to selling "divi hunters", but possibly the drop over done IMO, so bought a few.

[bookwormrobert] 23/2/2017 09:26

This is still a truly excellent company - and we're all 14.8p per share richer today thanks to the dividend!

[rhomboid] 23/2/2017 09:24

Yup, its usual as some odd folk try and buy in the day before and sell having banked the divi. No free lunch as M/Makers and cuter buyers fleece them on the way out...

[fenners66] 23/2/2017 09:21

Having said that its down more than the dividend.