RE: On my Radio13 Nov 2018 15:50
FYI Dan snippet from full article
Similarly, Debenhams (LSE: DEB) is another retail stock I wouldn’t touch at the moment. It’s currently the seventh most shorted stock in the UK, according to shorttracker.co.uk, with a 10.5% short interest.
One thing we’re seeing at the moment (and this applies to MKS too) is that, in general, the traditional department store retail model is no longer working. We’ve had House of Fraser go bankrupt recently, and the same thing has happened in the US, with retail giant Sears going under too. Clearly, buying habits have changed in recent years as online shopping has become so much easier.
Debenhams reported preliminary results a few weeks back and the numbers weren’t good, with like-for-like sales falling 2.3% and underlying profit before tax plummeting 65.1%. Furthermore, debt was up, and the final dividend was cut, meaning the overall payout for the year was just 0.50p per share, down from 3.425p last year.
Overall, the outlook for Debenhams is grim, in my view. As such, I’m avoiding the shares.