Member Info for Alessandro

Bigmac that growth includes acquisitions

It would be nice to know how competitors have fared in the past few weeks, especially Footlocker. Why has JD experienced softness? No much said. If it is a JD exclusive problem it would be a sign of though competition, rather than macro headwinds

JD must avoid any negative forecast, especially if speculative, referring to gov shutdown and budget. I wish CEO Regis could read this, I hope he is seasoned enough give a positive spin to the trading update

Hilton Food expects adjusted pre-tax profit for fiscal year 2025 of between 72 million pounds and 75 million pounds, which Panmure Liberum said was about 3% below the current market consensus forecast of 75.6 million pounds ($101 million).

Most likely the foods connected disposal (partial) and the Fairfax proceeds will be reinvested in Canada and Saudi. At least the Canadian deal is running over budget but good to read they are on time.

Jlovie too early to take the hit. You may recoup your losses in a matter of weeks. Next update at the end of January.

The combination of thin margins and weak negotiation power exposes to raw materials inflation. This weakness was exposed during the "pandemic".

The problem with fish is chronic.

The US shut down did not help but it is a short term headwind.

One profit warning issued today, usually they come in 3. Hopefully there won't be a dividend cut.

In my view a recovery play for the next 3 years at best.

While stocks like Lloyds are flying, Unilever struggles to keep above £45.

Such a disappointment of a company. Worked for them. Lack of innovation, endless nepotism. Some employees do not even know how to set up a Teams meeting. Stuck in the 2000s.

Why is JD "sports" selling Timberland boots no? Is that considered Athleisure? Why only now?

@Dwam

JD is a perennial if you ignore the last 20 years, where you can see a 20-bagger.

Looking ahead, 150p is achievable within 2–3 years, if the company continues to make successful strategic decisions, improves logistics, achieves cost savings, and benefits from favorable macro factors.

Unfortunately, those macro factors currently stack up against JD: tax increases in the UK, inflation, a globally weakening USD, and fierce competition in both the EU and the US (the Foot Locker acquisition by Dick’s is likely to bring some pain).

JD remains reluctant to sacrifice margins through heavy discounting, while competitors are more willing to do so, particularly as brands like Nike recently looked to destock quickly.

So while 150p is an optimistic target, it’s going to be hard to achieve in the next 2 3 years. The downward pressure is significant at the moment.

For the next TU expect more disappointment (warm weather, gov budget will be the first to be blamed).

I have read, probably a fake news, that with the new government budget, high rate tax lower threshold on income will be lowered from £50k to £45K. Speculation, but if true, the extra tax will hurt many families who will have to cut discretionary spending. That won't be good for JD Sports.

Https://www.investorschronicle.co.uk/content/86944800-8377-4d79-a924-29011a0e3b67?xnpe_tifc=Of4.xue_OFQ_4.V8xub8xypsafeWaeiWhFWLakUDVdechyPvbusLau4vOFU1hdJLRfXcbdiArFUux.zj4.hs4DsL4DnphfYT&utm_source=exponea&utm_campaign=Weds%20-%20IC%20-%20Investment%20Daily%20-%20Newsletter%20-%2005.11.25&utm_medium=email

Onlyprofit

Same here. I wouldn't buy yet though. This dog seems to be heading south.

Dwam - beware you may be caught in a short squeeze by Christmas. Why would you short an already undervalued stock?

Taverham Hoka is a small player overall, probably lost market share to Lululemon, On Running, perhaps to JD etc. Not a concern for JD Sports.

Unilever can't hold any significant share price appreciation. Always drifting downwards

@dwam

Obviously you're short on this.

If you believe that £1b buyback wouldn't make a difference for a company the size of JD, then why would any company buy back shares at all.

Btw, JD won't buy back that much. It was just hypothetical, to state the fact that £200 mln are insignificant for share price appreciation.

The buyback is a mere 2% of the market cap. It will do nothing.

If we buy back $200mln per year, definitely you would see share price appreciation in 5 years.

Rashm I will look into it. Earnings and revenue have not been on a positive and consistent trajectory lately...

Rashm what's wrong with Ferrexpo?