The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
As ever there has been winners and losers this year, however, to say this has been one of the best years in recent years for retail is way off of the mark. Consumer confidence is v low, the pound has dived, any retailer with physical stores is facing multiple pressures. All of these things will be affecting the FCCN SP as well as the updates from other retailers. The fact is we don't know and won't know for a period of time how FCCN did over xmas. There has been no profit warning but at the same time I can't believe they have broken any records. But back to your post Rio I do wonder where you get these things from.
Interesting update, sales not as strong as I would have hoped however with the lower intake margin due to currency it is positive that full price sales were up. What was positive was the positive cash flow v negative cash flow last year and in last years numbers was the sale of regent st. Good to wholesale back on the right track as the appointment of new non exec directors.
It has been a perfect storm for retailers weather wise, decent early summer weather with a late easter. Then since July when transitional product has been launched, the weather has turned cooler. Last week was around 10 degrees cooler than last year last week (2 degrees makes a difference to customer shopping behaviour). Also retailers this year were up against the impact of brexit in their figures this year. I think you could be surprised Rio. Also I like FC's new ranges, more so than previous years, they are pushing the more premium product. Anyhow enough speculation. We will know soon enough. Key thing is current trade & cash in the bank like I have been saying
I anticipate strong retail sales from the update tomorrow. I have been slowly stake building here. I am also expecting an update on non execs and the sports direct interest, hopefully. If cash in the bank has been broadly maintained this could head past 50p
I still retain a small holding here. Interesting how the share price has held steady in recent months, I am not convinced that all the sells that are going through are really sells. Trade on the high street is v soft (New Look, Arcadia, M&S, Next), As FC have gone on sale today we can assume trade is tough for them as well. Political backdrop is what is and will continue to be. Consumer confidence is reducing (from a relatively high place). However this share is about the battle for the company and how that plays at. Even if the next update is poor as long as £ at bank is protected (which I think it will be) the share price should be hold firm.
I think Christos leaving as non exec will fire up the activist shareholders further so I think we will see the board put under increasing pressure. In terms of Angelides and his shares I am pretty sure he would have sold these over the past couple of weeks.
Agree at face value is not good news, I had a sneaking feeling that he would get the CEO position at FC and that was probably his intention when you consider he has gone to a very similar (similar in terms of market position and turnover) company as CEO. Maybe he knows it is going to be sold and he does not want to be part of the new team.
Rio, I am not looking to sell here as I don't have as I don't have a huge holding in fact I am looking to scoop up some more however I do agree the SP can slide on thin volumes. In terms of your latest post my personal feel is it is wide of the mark. You cannot take a London fashion brand and move it to a warehouse in Shirebrook. It just does not work like that for many reasons not least because FC is a wholesale brand that bolted on a retail division. So therefore they sell, you can't sell premium product from a warehouse. You need a showrooom, design team etc. It is the brands DNA. Retail is littered with brands that moved head office from what made it great to a new location eg the New Look from Dorset to London. Also on point 2 it seems like you think FC is going to go into some pre pack admin situation, It won't happen. Marks is a rich man and has restaurants, magazines, golf courses, property, he is not going to let it go pop. There will be an action before that.
There has been good buying volume at the 38p - 39p and with little reason to sell following last week's news I see little reason why the share price won't start with a 4 this time next week.
Good point Rio about Oxford st and Flannels, that would be a perfect site for them. I have always said the true value of FCCN in the present situation is £100M.
Game on, this will be brilliant for the share price, sports direct are well know for aggressive tactics when trying to take over a company. 50p here we come.
I think the fact that someone has put their hand in their pocket today for a few million quid shows some genuine interest.
It is beginning to make a bit of sense now. Schroders are absolutely huge and have zero emotion when it comes to investments. They would have modelled FCCN are coming to the point where cash flow could become an issue. And there we go that is them out, regardless that they have held the stock for donkeys and will have lost a huge amount of £. What is more interesting is who has bought and all the noise that has been coming out from the media about FC's struggles of late. I wrote a couple of days ago about the activist shareholders and their PR machine. Interesting times ahead! Honestly don't rule anything out over the coming months. Share price could be volatile over the next couple of days but I am confidant it will rise from now.
Still not absolutely sure what the deal is here. However in my experience a lot of noise, which is what I am hearing, means we should get a decent shift upwards. One thing we can now guarantee here is change (in whatever form) so I see 50p coming soon.
To be honest, I don't know. That level of shares changing hands must involve Marks? Or someone stake building big time.
Yep, I am in, that was buy, something happening here.
Wow, those are big trades going through.
Kent1 you make a valid point, very few stores makes a profit on Oxford st due to the Rents and Rates. So if it loses £1M a year (It could be profitable I don't know) and it is sold for £5M then that has a big impact on the P&L up until 2025. However I think £5M is far too cheap for a store that size on the door step of Selfridges.
It is interesting as well that it is Under Armour that are supposedly interested, eg an American company rather than a British one and the Activists are American. Could be a coincidence. Yes it looks like Marks is digging in and seems determined to go out on his terms as it were. A poor update will affect the price in the same way as a poor update from any listed company. I honestly don't think you can second guess the results and the £ in bank based on what has been put on in the press. Yes good to debate.
I think what we have here is an activist shareholders PR team at work. They are obviously pushing supposed 'news' into the press, they did it with the non exec's which to be honest after 9-10 years they should be replaced anyway. For me with the pound so weak Oxford st sites are even more attractive than a year ago due to the footfall of foreign visitors. This is a prime lease and for me there is no way Marks will sell for £5M, they are may be burning £ but they are still not into their over draft. So I think this is all contrived speculation.