shake it all up m8 -- get the stock price back to 400 and I can say goodbye.
"""A former colleague of Archie Norman, chairman of Marks & Spencer, has been appointed as the head of the struggling retailers food business. The appointment of Stuart Machin, a 30-year retail veteran and boss of Steinhoff UK, the company behind Poundland, Harveys and Bensons for Beds, will renew speculation about the growing influence of Mr Norman at M&S. - The Times""
The squeeze on the High Street continues - interest rate hikes, business rates, car parking fees including congestion charge. Overall retailers have no option but to switch more of their sales to the Internet and close unprofitable stores.
M&S store portfolio may be just too big or wrongly sized for the future - the futuremay be fewer stores and more showcase stores with Internet access for customers?
M&S is ahead of Inditex in terms of % of sales via Internet but lags Next. The thing I find puzzling is why M&S with all its clever retailers struggles to narrow the performance gap on say Inditex or Next?
The store portfolio need to match customers' needs and if it is satisfied through Asos-style set-up so be it.
Just noticed the mention of Superdry. Initially, I thought that it must be a feminine hygiene brand, but after some investigation I determined that it was sports gear.
I'm amazed at how popular it appears to be, but I've got to say that the gear doesn't live up to the hype of their "products combining vintage Americana styling with Japanese inspired graphics", at least, they don't inspire me, and seem very ordinary.
I'm reluctant to say that they're just a flash in the pan before being displaced by the next good thing, but...
philanderer - " Picked one up further along oxford street at John Lewis."
That reminds me. Last Monday, the wife went to JL at Sloane Square to get a black dress but couldn't find anything suitable. The only possible dress was from a label costing some £350. Carried on down Kings Road and picked one up at M&S for £35. Close shave, m8s, lol.
must say I've thought for many years that a MKS/Sbury tie up would make sense
in terms of logistics and economy of scale. My wife put £3K into what was then
a single company PEP with MKS some 30 years or so ago and despite all dividends
being re-invested its still in the red!
If the budget falls short of creating a level playing field then institutional shareholders of M&S should lobby for a merger with another High Street chain, say, Sainsbury. In merging it would create more opportunities to create value - stronger together than as a separate identities.
Why wait for a GKN- like takeover, a ten year turnaround at M&S is too long, is it better to opt for a merger to create a new stronger business focused on customers and shareholders?
No classic regular fit linen suits in the M&S flagship store at Marble Arch. In fact the mens department was pretty empty. Picked one up further along oxford street at John Lewis. Alteration service also on offer there to slightly lengthen the trousers for £13. Ready to pick up in two days.
Surprised to hear about expanding jeans. I've been wearing M&S jeans since I don't know when and never had a problem, but not disbelieving you.
Wife bought me a pair of heel grips for my dance shoes from Primark, and they came unstuck on first use. A previous paid I'd bought from Boots for twin dance shoes are great. Seems like there can be probs anywhere.
I have bought several pairs of jeans from M&S over the years. Bought some last year and top was far too baggy, so I sent them back. Ordered some last month, waist 36". After two wearings the waist had stretched to 43". Absolute rubbish. They went back as well.
They have an uphill struggle, imo, but they do now have Archie Norman, who might just do more than arrange the deckchairs...
Placed an order online last week. It arrived ahead of time, despite the weather conditions. In the local store to collect and the whole shop was very busy. They extended the Sparks 20% off because people couldn't get in when it was on. Seems like it worked well. Their click and collect is really top notch, unlike many other big retailers.
Popped into M&S today to get myself a DJ and shoes. Tell you what, the staff were very helpful. Tried on 2 DJs and got advice from fitting room lass, who helped me with deciding on the correct trouser length. She then went through the process of arranging the adjustment. Really helpful. Only fly in the ointment was the time taken for the shortening, but I'm in no hurry.
To add to that, the fitting room lass got me a pair of dress shoes so that we could get a better idea of how the trousers sat over the shoes - mine being a bit unsuitable...
They had a good range, too: Regular, Slim or Tailored.
That's what makes a market....both sides on thinking. I like Boo as well with being in them not as low as that but 38p.
Extract on SDRY
Peel Hunt has edged up its eps estimate to 100.4p this year to end March, which will be reported on 10 May, with 123.6p and 141.3p for the next two years. As the broker notes, with the major parts of the heavy lifting done, [future results] will be typified by rising sales, gross margin, ebit margin and cash generation we expect average free cash flow to rise from £14m pa over the last three years to £86m pa for the next three, leaving potentially >£200m for shareholder distribution from FY18-20.
is to be fair in my humble opinion just the opposite of MKS.
A fast growing business v a mature old girl
Market cap is 2x sales v 1/2 sales at MKS.
Div is 1.6% v 6.33% growing against a flat one at MKS
Shareholder funds are just 1/6 or 16% at SDRY against 75% at MKS
That said my daughter put me in BOO hoo at 25p and look where we are now!
Hi Bill - I think you will do ok over time at these levels.
I will need to do the same as you ie bring my average down at some point but for some reason I have held off but if we get down as low as Jefferies lowest price target of 2.50 then I will take the plunge between 250-260.
It maybe when we get news flow on the dividend yield and shorters level reduction by closing we see the downtrend get tested and then build from there.
"Personally, I am looking to buy, rather than sell, when both expectations and valuations are at historically-low levels - until such time as it's proved the wrong strategy (and it never has before)..."
FWIW I have added to my holding this morning, in reasonable size. Not without risk in this one, obviously... but at least it brings down my average price to what looks like a very decent risk/reward level long term...
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