|Bid||176.55 x 0|
|Ask||176.70 x 0|
|Day's range||176.05 - 183.15|
|52-week range||161.35 - 306.20|
|Beta (5Y monthly)||0.87|
|PE ratio (TTM)||35.21|
|Earnings date||20 May 2020|
|Forward dividend & yield||0.11 (6.14%)|
|Ex-dividend date||14 Nov 2019|
|1y target est||294.84|
Higher risk can often offer the potential of higher return for aggressive investors, writes Jonathan Smith.The post 2 growth stocks for aggressive investors' ISA holdings in 2020 appeared first on The Motley Fool UK.
Tesco, Britain's biggest retailer, unlawfully stopped major supermarket rivals from opening shops near its stores, the country's competition regulator said on Friday. The Competition and Markets Authority (CMA) said it first discovered that Tesco had been preventing landlords from letting property to other supermarkets during monitoring in 2018. Tesco then reviewed all of its land agreements, finding 23 breaches in total.
(Bloomberg Opinion) -- Ocado Group Plc, the British online grocer that’s morphed into a technology company, has always been a jam tomorrow stock. Now it’s asking shareholders to wait not just for the jam but the full afternoon tea.The specialist in automating how supermarket orders are filled on Tuesday announced that its 2019 pre-tax loss jumped to 214.5 million pounds ($277 million), from a loss of 44.4 million pounds a year earlier. Part of this was due to a damaging fire at its Andover warehouse almost exactly a year ago, which was unfortunate but Ocado has coped well with the disruption.What’s more worrying for investors is the impact of investment in its burgeoning international division, which has been striking deals to operate the online grocery businesses of chains from the U.S. to France and Japan. While that’s a credit to Chief Executive Officer Tim Steiner, who has been knocking on retailers’ doors for the the past five years, it means Ocado has an awful lot to do — and pay for. Ocado’s international technology arm could be more lucrative in the future, but for now, it’s a drain on capital. Consequently, Ocado said expenditure would more than double this year to 600 million pounds. Take away the impact of the warehouse fire, and that leaves a balance of just over 500 million pounds for building state-of-the-art warehouses that are fully equipped to pack grocery orders with limited need for humans.The majority of this will be spent on getting its automated warehouses up and running for international customers, including Casino Guichard Perrachon SA in France, Canada’s Sobeys Inc. and the U.S. chain operator Kroger Co. Some of the expenditure will be offset by expected fees from its international clients of more than 100 million pounds, but most of it is a down payment on future income once the systems are fully up and running. That doesn’t leave much scope for any unexpected hiccups in the meantime.Until those warehouses are open, Ocado cannot recognize the international revenue, but it must incur the costs. That showed in its 2019 results. Ocado invoiced fees of 81.4 million pounds to its international partners, an increase of almost 40%. But revenue from this arm was less than 1 million pounds, while it made a loss before interest, tax, depreciation and amortization of 62.1 million pounds. For this year, Ocado forecasts international revenue of less than 10 million pounds. Warehouses for Casino and Sobeys will be open for only part of the period. In the meantime, Ocado must continue its heavy spending. It had 751 million pounds in the bank at the year end, thanks to its deal to sell half of its U.K. retail business to Marks & Spencer Group Plc. It also raised 600 million pounds through a convertible bond issue after the year end. The company says this gives it plenty of headroom. But with such an investment burden over the next few years — it has also signed a deal with Aeon Co. in Japan — further calls on shareholders can’t be ruled out.And let’s not forget challenges closer to home. In September, M&S will replace Waitrose as Ocado’s supplier for its U.K. online supermarket, a massive changeover with huge execution risk.For now, investors appear confident that once the different warehouses are operational the fees will start to flow into profit and cash flow. The shares have risen by a third in the past year. Ocado’s enterprise value is currently just over 4 times forward sales, even ahead of Amazon.com Inc., on just over 3 times.This looks divorced from the reality of both Ocado’s spending needs, and the long haul to generate a return on its investment.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Marks & Spencer on Tuesday appointed Eoin Tonge, currently the chief financial officer of Irish food group Greencore , as its new finance chief, filling a void left by the departure of Humphrey Singer at the end of last year. Tonge joins at a difficult time for M&S, whose shares have fallen 35% over the last year. After more than a decade of failed re-inventions, the 136-year old clothing and food retailer set out on its latest transformation plan shortly after retail veteran Archie Norman became chairman in 2017 to work alongside Chief Executive Steve Rowe, who has been with the firm for 30 years and became the boss in 2016.
The UK high street sales have taken a battering in recent months, but some brands are doing exceptionally well online. Here's a sample of how cash registers are ringing.
Boohoo (LON: BOO) has had a great run while Marks & Spencer (LON: MKS) has underperformed. So, which is the best buy now? The post Boohoo is now as big as Marks & Spencer. But which stock is the better investment? appeared first on The Motley Fool UK.
The boss of British supermarket group Sainsbury's, Mike Coupe, said he was not stepping down in May because of his failure to buy rival Asda last year. Sainsbury's agreed 7.3 billion pound ($9.6 billion) deal for Walmart owned Asda was blocked by Britain's competition regulator in April. Coupe, who is 60 this year, has been at Sainsbury's for 15 years, six as chief executive.
Does the January share price for Marks and Spencer Group plc (LON:MKS) reflect what it's really worth? Today, we will...
With the Marks & Spencer share price falling, is the stock truly cheap or could it lose an investor money?The post The Marks & Spencer share price is down 12% in the last month. Would I buy? appeared first on The Motley Fool UK.
This FTSE 100 (INDEXFTSE:UKX) growth hero looks like a strong long-term buy-and-hold to me.The post £1k to invest? I'd buy this FTSE 100 growth stock, but shun this FTSE 250 faller appeared first on The Motley Fool UK.
It’s cheaper, but I think there’s more to consider here The post Why I’d prefer the Tesco share price over Marks & Spencer in 2020 appeared first on The Motley Fool UK.
U.K. retail sales disappointed again in December dropping 0.6%, adding further force to arguments for an interest rate cut from the Bank of England at the end of the month.
(Bloomberg Opinion) -- Christmas 2019 should be consigned to the dustbin along with the crumpled wrapping paper and the wilted tree. That’s the message that has come in loud and clear from British retailers. And it caps off a miserable year. Total sales for 2019 fell by 0.1%, the worst year on record, according to the British Retail Consortium and KPMG.There’s no doubt consumers were cautious in the run-up to the holidays. But store groups can’t blame it all on Brexit. There were some own goals, too.Wm Morrison Supermarkets Plc missed the halo effect from Black Friday by reining in promotions right as shoppers sought deals during the U.S-imported retail frenzy. Marks & Spencer Group Plc also hasn’t participated for the past few years. While it’s the right instinct to protect against diluting margins ahead of the holiday season, going too far to do so is painful too.John Lewis Partnership Plc warned that its profit would be “significantly lower” than a year ago, and parted company with the head of its department-store arm, Paula Nickolds. It’s hard not to think the privately held company’s challenges have been made worse by some of its own decisions, such as blindly sticking to its pledge to always be cheaper than rivals. Times have changed since the promise was made many years ago, and it’s become untenable in a market characterized by intense and constant discounting.But perhaps the performance by M&S is the most disappointing. After seeing some positive signs in women’s wear, it made a fashion faux pas in men’s clothing by getting too trendy for many of its customers. Its range of more contemporary, slim fitting shirts and suits weren’t on trend with its predominantly older shopper base, and it simply stocked too many small sizes than was reasonable.The high street stalwart also didn’t have the right Christmas gifts, having gone down market just as consumers were seeking more expensive items, such as cashmere sweaters, and more experiential gifts such as spa days. Consequently, M&S’s like-for-like sales in clothing and home furnishings fell 1.7% in the third quarter, worse than the consensus of analysts’ expectations for a 0.8% decline.The performance is particularly disappointing given that many of M&S’s key competitors, including Debenhams Plc, John Lewis department stores, Mike Ashley’s House of Fraser and Philip Green’s Arcadia, are not firing on all cylinders. And the self-inflicted damage wasn’t confined to clothing. Although demand for M&S’s Christmas food was strong, it wasn’t as pronounced as it had hoped. It misread the market, buying too much festive fare to make sure it had enough available and wound up with far too many leftovers once the holidays came to an end. Consequently, gross margins are expected to be at the lower end of expectations.The shares fell as much as 11.6%. It isn’t the first time M&S has messed up at Christmas. In the past, it suffered from problems at a key distribution center at Castle Donington in central England. This year that facility held up, but the new round of blunders is worrying. In contrast, other groups that have been operating quietly without hiccups, such as Tesco Plc, Greggs Plc and discount home-furnishings retailer Dunelm Group Plc, delivered solid performances. It will also be worth watching out for Associated British Foods Plc, which should have benefited from Primark’s strong selection of gifts and party dresses in the run up to the holiday.With any Boris bounce after the U.K. election proving elusive, 2020 is set to remain tough. The lesson from this Christmas trading season is that to prosper, retailers need to stick to their knitting, and ensure that their own actions don’t make an already difficult backdrop even worse.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
European stocks picked up their record rally on Thursday as the United States and Iran signalled a desire to avoid further conflict, while rising expectations that a Phase 1 U.S.-China trade deal will be signed next week also provided a lift. A 1.3% gain for Germany's trade-sensitive DAX stood out among regional peers, also benefiting from data showing better-than-expected industrial output in November that dispelled any remaining worries about a recession in Europe's economic powerhouse. "Confidence is recovering at a pace in Europe," said Steven Holden, CEO of Copley Fund Research.
Higher food waste and weak sales of menswear and gifts tarnished Marks & Spencer's (M&S) Christmas performance, hammering the British retailer's shares and raising more questions about its latest turnaround attempt. M&S said on Thursday that while sales volumes in food increased, it also experienced higher waste levels. The group said its gifting performance was hit by "unprecedented discounting" in the UK clothing market between Black Friday and Christmas.
London's main share index advanced on Thursday as chances of a full-blown crisis in the Middle East waned, but mid-caps lagged as SIG and Marks and Spencer fell after warning of lower annual results. The FTSE 100 rose 0.3% on its best day in a week after U.S. President Donald Trump stepped back from more military action against Iran and Tehran signalled an end to retaliation. "It looks like the shooting war is over for now, but there is always the potential for escalation at any point," Markets.com analyst Neil Wilson said.