The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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The Interims won't come out next week.
Tuesday 21st is the date for your calendar for the Interims.
We're very likely to get Interim results next week ... maybe some inside info has leaked, but I'm expecting things to be better than the naysayers are predicting. Even more important is the H2 performance with "new school shoes" in July / Aug. The beauty with shoe, is that it is very, very difficult for the likes of Amazon (or Temu) to deliver individual bulky boxes to 10m households, when half will likely also be returned for being the wrong size (kids feet grow). I've long said that of all the high street retailers kid's shoes is the last to go online ... $250+ Nike designer sneakers, sure ; $10 kids kick arounds, mmmhh !
‘’I don’t see bankruptcy as a risk’’
Are you taking the proverbial !
Let's hope for a good update soon
Useless
This is my only retail share which has NOT gone down today!
In my opinion, the market wasn’t previously pricing much risk into this stock.
It was on a very posting trajectory, but now we’re seeing trading ‘falling below expectations’, so the reality is that we’re seeing a decline in profit margins, due to:
• A rise in the cost of wages (surely they were aware of this beforehand though?)
• Discounts on shoes (which implies an a lack of pricing power and a lack of demand - is the competition increasing?)
• A rise in container shipping costs
• Increases in property costs, as they renovate the existing portfolio, close existing stores and open new stores (surely this is going to harm the bottom line for the next few years?)
Then in the near future, we may see the pension deficit come back with a vengeance if interest rates start declining. That would also result in many consumers having more disposable income, which is bad news for budget retailers.
All things considered, I think a lot of investors will be looking to cash in on their investments here (well done by the way, especially to those who bought in a few years ago), whilst others decide that the outlook is too bleak/risky for them.
If this was cheaper (£1.50 or below), it would really start appealing to me, but I think it’s a bit of a coin toss for the foreseeable future. Don’t get me wrong, I don’t see bankruptcy as a risk, but I wouldn’t be surprised if the share price falls significantly over the coming months and years, especially if the NYSE experiences a correction/crash
All in my honest opinion. Do your own research.
I think the headline "as much as 13%" lower prices in the retail article is quite misleading. I have a great deal of confidence in the SHOE mgmt to get this pricing right ahead of the key 'new school year' season. They're only reducing 3-5% on kids shoes ... who cares about ladies slippers ! I believe they have assessed the need to sell stock already produced and delivered rather than leave it unsold. With low priced items this can be a gamble but I strongly believe they understand their business better than the analysts and we should see a reversion to 250p later in the year
Shoe Zone lowers prices accross core ranges
Meanwhile it's in freefall, day after day.
Yes, a stonking buy at this price.
Movement does seem overdone to me. Did think the rise above 250p wasn't really justified (wish I had top-sliced a bit more) We're almost through H1 so the BoD will have a good idea where the numbers stand ... but the bulk of revenue and profit comes in H2 with the Summer "school shoes" buying season. Last year H1 Rev 75m PaT 2m ; H2 Rev 90m PaT 11m. If H1 is only marginally down on expectations then it might be merely a repeat of last year and no growth. I think 150m revenue and 10m profit would still justify a 240-250p price, especially with a solid dividend
Imo the volume is pitiful really, no way justifies 8%.
Must be the huge spread here.
It's crazy after reaching 290 last week
£240k sells
£11k buys
7% down on what, algo sells ?
I don’t see how 290 is “too high” it’s now sitting at around 7.7 p/e and profits/revenue are increasing. If anything it’s too low at 290. Marginal missing of expectations doesn’t warrant this drop. Oh well no point waiting for the market to be rational.
I would expect it to recover some today as people buy back in for the dividend but nothing is predictable these days. I think it’s an overreaction tbh 17% drop for “marginal” missing of expectations? It’s still profitable and the business is still going in the right direction. Odd. Seems to be a lot of panicky holders and that in itself makes me think twice.
Yes you did say that Eccles and the fact that it went up as high as 290 makes this drop feel even
worse
I said it was too high dint I. Trouble is folk get carried away when some amateur pundit in a newspaper opens the gob I bet he made a few bob tho'
Might be a good idea to look at the share in the portfolio with agm’s or trading updates coming up and think about reducing before they come
Which says it as it is. Today SHOE, but what about the other companies suffering the same but who have yet to report?
That was short lived!
All time high I believe!
Far too high now, I will wait until after ex div before dipping a toe.