Last week’s interest rate cut, better weekly numbers from John Lewis, a weather boost and cautious broker optimism about general retailers all helped lift the sector.
General retailers were the week’s biggest beneficiaries and raced ahead of the All Share index. Argos owner Home Retail Group was one of the winners as investors bought in expectation that the retailer would regain blue-chip status when the FTSE 100 was recalculated on Wednesday.
Morrisons had the top-performing grocery shares after impressive third-quarter figures were backed up by a strong showing in the latest TNS market share data.
Bernstein expects the big grocers’ UK growth rates to be broadly similar in the medium term, but remains a fan of Tesco. The broker said: “Tesco’s group revenue growth will continue to significantly outpace Sainsbury’s and Morrisons’ due to its faster growing international business.”
Pali International is worried about the outlook for booksellers on the back of industry data showing a falling market. The broker downgraded WHSmith from buy to neutral and put HMV, owner of Waterstone’s, under review ahead of yesterday’s results.
Carpetright, which posts interims on Tuesday, completed its acquisition of beds retailer Sleepright, which operates concessions in 93 Carpetright shops. Carpetright will pay£1.8 million,£1 million of which is dependent upon Sleepright hitting specified profit targets.
JJB Sports has renegotiated repayments to its bankers. Instead of having to repay a£20 million bridging loan to Kaupthing by December 14 the retailer has paid£20 million pro rata to its three lenders – Barclays, HBOS and Kaupthing. The retailer said constructive discussions continued with banks “with a view to agreeing a basis for ongoing support”. Retail sales fell 8.9 per cent like for like between July 28 and December 7. Discussions continue about the sale of JJB’s fitness clubs.
Blacks Leisure has transferred operation of the O’Neill UK wholesale business to O’Neill Europe. Blacks boss Neil Gillis said: “Transfer of the business back to the licence holder will free up management resource and reduce the group’s working capital requirement as it continues to execute its recovery plan.” Singer Capital Markets said the deal would enhance Blacks’ valuation.
AIM-listed Ideal Shopping Direct expects to make a£4 million trading loss this year after sales slid 17 per cent in the six weeks to December 7. New chief executive Mike Hancox said conditions had been “extremely challenging” but that “radical action” – including the axing of 70 jobs – would improve efficiency and reduce costs.
Morrisons had the top-performing grocery shares after impressive third-quarter figures were backed up by a strong showing in the latest TNS market share data.
Bernstein expects the big grocers’ UK growth rates to be broadly similar in the medium term, but remains a fan of Tesco. The broker said: “Tesco’s group revenue growth will continue to significantly outpace Sainsbury’s and Morrisons’ due to its faster growing international business.”
Pali International is worried about the outlook for booksellers on the back of industry data showing a falling market. The broker downgraded WHSmith from buy to neutral and put HMV, owner of Waterstone’s, under review ahead of yesterday’s results.
Carpetright, which posts interims on Tuesday, completed its acquisition of beds retailer Sleepright, which operates concessions in 93 Carpetright shops. Carpetright will pay£1.8 million,£1 million of which is dependent upon Sleepright hitting specified profit targets.
JJB Sports has renegotiated repayments to its bankers. Instead of having to repay a£20 million bridging loan to Kaupthing by December 14 the retailer has paid£20 million pro rata to its three lenders – Barclays, HBOS and Kaupthing. The retailer said constructive discussions continued with banks “with a view to agreeing a basis for ongoing support”. Retail sales fell 8.9 per cent like for like between July 28 and December 7. Discussions continue about the sale of JJB’s fitness clubs.
Blacks Leisure has transferred operation of the O’Neill UK wholesale business to O’Neill Europe. Blacks boss Neil Gillis said: “Transfer of the business back to the licence holder will free up management resource and reduce the group’s working capital requirement as it continues to execute its recovery plan.” Singer Capital Markets said the deal would enhance Blacks’ valuation.
AIM-listed Ideal Shopping Direct expects to make a£4 million trading loss this year after sales slid 17 per cent in the six weeks to December 7. New chief executive Mike Hancox said conditions had been “extremely challenging” but that “radical action” – including the axing of 70 jobs – would improve efficiency and reduce costs.
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