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I’m sceptical too. When people throw out terms like ‘priced in’, it’s a guess, isn’t it? Plenty said it was priced in at £5 , £4,£3....
I wish someone, anyone, would point out what I’m missing in regard to the observations I have about the product and the stores. Can you see the difference between Sutherland’s sdry and the current sdry? I can’t. How are the sales going to increase when it’s the same product in essence? Most of the top management walked, and JD comes in as a man with many business interests from cider to hotels and pubs. US flatlining, China pull out. Where’s the growth? And how is JD going to achieve without bringing in new talent? It will be difficult attracting the right sort of people to Cheltenham.
Fair enough Roharps cheers
It's not profit. It's basically cash raised from stock. So reducing stock levels to keep more liquidity in the business. Some of that would have been money raised from sales online.
Jimini for what it’s worth my opinion is riddled with scepticism. How did they turn 39.8m in May into 57.8m in August when for the most part the stores were closed. I don’t know but I’d be surprised if it was profit from online sales, I think it’s deferred rent and rates.
Why is it taking to mid September to report last year’s results. It reminds me of school, the smart people did their work and turned it in neat tidy presentable and on time, the rest offered excuses. Even if nobody likes my metaphor taking months to turn an assignment in is poor to say the least.
I don’t like it.
Does part of the 57.8m belong to the landlords?
Another analyst reiteration would help or Gatemore Capital Management announcing an increase in their stock holding would to reassure.
I remain sceptical and will welcome any happening that helps to remove my doubts. Maybe I’m just too sceptical, time will tell.
The market likes it, I like it its undervalued, tiki Tokyo
Hi Carllapos.
Sure, business was bad, sp reflected that. I’m aware of the sp, painfully so :( Anticipation for profit was somewhere between £10m and ‘zilch’. So we know for sure that hasn’t changed for the better.
For me, the sp is a reflection of the wider investing audience not believing in recovery, but believing the brand is a spent force. I have some sympathy to that perspective. I’ll await solid sales figures to prove the general perception in the retail industry that it isn’t the case.
Survival...is one thing, securing new financial arrangements is one kind of exercise. The ‘next step’ you refer to, a ‘return to sales growth’ is a different matter entirely. I’ve said many times before that I had wanted to see real evidence of change once Dunkerton returned. I simply have not seen it. He has fewer people there than when he took over. I’ve not seen any new talent, I’ve not seen any change in direction, shopfits, product offering. If it wasn’t selling before, why will it start selling again? It’s a serious question. Can you identify where things are different? Every store I visit has the same issues that I’ve seen for several years, too crammed, confusing layout of product, repeat product in places, ineffective delineation of product by type or genre. It’s almost as if a bloke from Tesco’s was responsible.
From the conversations I’ve had, there are some sales going through, but inevitably at super discounted levels, especially online. Doesn’t paint a hopeful picture.
I do know exactly who JD is, having met many times.
Jimini,
The brand issues that you mentioned were already priced in pre covid. So even with those concerns, the SP has massive headroom towards 300p and that’s without any major turn around.
Let’s not forget, when the brand was selling well, the SP peaked at 2000p. So first stage, ensure covid survival, this could see an SP between 200-300p. Next step return to sales growth and profit over the next 3 years. Which gives the SP the potential to return to its previous highs! What stop you get off at is up to the individual.
Dunkerton isn’t some employed MD, his personal wealth is heavily linked to the SP, so the incentives are huge for him.
As I said before a massive amount of bad news was priced in to SP. The RNS revealed things were no where near as bad as priced in to the SP. The SP is still a complete joke. Too low for the assets and brand the company posesses. It should be well over 2 quid
It seems they will come through the Covid crisis in a better position then many other high street retailers and to me the brand is strong. I saw lots of people going through Stansted the other day wearing Superdry.
The London shops I have visited reported doing quite a bit of business pm.
I am comforted by the recent price increase, every penny heading north is to be congratulated.
But, a short term blip in online ( which has normalised), for me, is really nothing to get excited about. ‘Confident’ and ‘better than anticipated’ without context, don’t mean a great deal. Yes, finance sorted, sdry has ‘survived’ and can get on with the transformation, whatever that means. Fundamentally, not a great deal has changed for me in terms of how I see the progress from an improvement of the brand and associated sales.
It will be very interesting to see what level of margin the revenue is producing. I think it will be small.