|Bid||4,209.00 x 0|
|Ask||4,213.00 x 0|
|Day's range||3,967.00 - 4,217.00|
|52-week range||3,311.00 - 7,358.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||9.00|
|Earnings date||19 Mar 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||5,337.47|
These two FTSE 100 (INDEXFTSE:UKX) stocks could offer recovery potential in my opinion.The post These 2 FTSE 100 share prices have crashed by over 40%. Here’s why I’d buy them today appeared first on The Motley Fool UK.
The Next share price has fallen too far, thinks Roland Head. He believes this successful retailer has a strong future.The post The Next share price has fallen by 45%. Here's why I'd buy it today appeared first on The Motley Fool UK.
Royston Wild discusses a high-risk FTSE 100 stock he's expecting to cut dividends very soon.The post A 5%-yielding FTSE 100 dividend stock I wouldn’t touch with a bargepole appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- Donald Trump wasn’t alone in hoping everyone’s lives could get back to normal by Easter weekend.Retailers’ decisions to furlough hundreds of thousands of U.S. retail workers this week underscore that store closures are set to go on for much longer than initially anticipated. Closings in many major markets around the world will remain in place through next weekend and beyond, wreaking havoc with the prime spring shopping season.Hennes & Mauritz AB said on Friday that net sales fell by 46% in March from the year earlier. It expects a loss in its second quarter. The extended closures will now affect crucial pre-Easter shopping period, worth about $25 billion to U.S. retailers, according to GlobalData. While people may still indulge in filling their children’s baskets with chocolate eggs to create some holiday cheer in this difficult time, crackdowns on even the smallest of gatherings mean they won’t be planning big fancy meals, nor refreshing their bunny-and-chick-themed decorations. What’s more, consumers can’t take advantage of the long holiday weekend in much of Europe to start shopping for the latest trends for summer. That’s a blow because it typically kicks off the period when consumers refresh their wardrobes, home decorations and gardens for the warmer months. If temperatures soar, that can normally set non-food retailers fair for the coming quarter. From there, people’s diaries would typically be chock full with weddings, graduations and parties, plenty of reasons to update one’s wardrobe. But the novel coronavirus has radically changed all of that, eliminating pretty much any reason to dress for success. It’s estimated that half of couples planning weddings in the U.S. this year are looking to postpone them, according to data from the Wedding Report. The graduation season has been thrown into question. More than 80 U.S. colleges and universities have either canceled, postponed or been turned their 2020 commencement ceremonies into virtual gatherings. View this post on Instagram A post shared by Nordstrom (@nordstrom) on Apr 2, 2020 at 5:40pm PDTThat means everything from floral dresses to pastel hued shoes may have to be offloaded. Discounting to clear unwanted stock means the crisis is likely to last well into the second quarter, and possibly beyond.There’s another reason why the impact on may be bigger than initially feared: Some online demand has evaporated. Retailers have to ensure workers processing internet orders observe strict social distancing rules. So far British online fashion group Asos Plc, which generated 13% of its sales from the U.S., has kept its warehouses in Atlanta, Berlin and the U.K. open, albeit with longer delivery times. But rival fashion chain Next Plc has stopped taking online orders while it reconfigures its distribution centers. This would be in line with its worst case scenario of the business being closed for four weeks, cutting full-year sales by 1 billion pounds ($1.2 billion).No wonder store chains have shifted to cash preservation mode. H&M said it was taking a number of initiatives, from cutting working hours to seeking rent reductions, to try to cope. In the U.S., hundreds of thousands of staff are being temporarily laid off, with chains such as Macy’s Inc., J.C. Penney Co., Kohl’s Corp. and Gap Inc. halting pay for much of their workforce while preserving some benefits. The longer the hiatus in consumer spending, the more likely that some retailers and restaurants just won’t open their doors again. Others may decide to radically cut down on their brick-and-mortar locations. U.S. department stores, already grappling with the shift to online and mostly lackluster product selections, look particularly challenged.But even companies that do emerge relatively unscathed could find recovery just as demanding. Consumers who have kept their jobs will likely be eager to splash out on holiday and work attire when they’re finally able to move about freely and go back to the office, purchases they can fund with money saved during lockdown on everything from gym memberships and dining out.The question is whether any pent up demand will be enough to alleviate lost sales from those who have been temporarily laid off, or worse, made redundant. Individuals in fear of losing their jobs, or being forced to take pay cuts, are likely to save more. So consumer-facing companies need to brace themselves for a long haul. It’s going to be some time before stores reopen, and even longer before they get back to any semblance of normality.This 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.
Wise words from the heyday of the British Empire.The post Investing advice from Rudyard Kipling? Yes – really appeared first on The Motley Fool UK.
A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.
Is this FTSE 100 income stock too cheap to ignore? Royston Wild takes a look.The post Should you buy this FTSE 100 dividend stock as the stock market crash eases? appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- As consumer groups grapple with how to cope with the unprecedented impact of Covid-19, Nike Inc., one of the world’s most successful brands, has given a useful road map.Unlike Britain’s Next Plc last week, Nike didn’t quantify the financial hit as the pandemic spreads. But it did give some helpful operational pointers, using its experience in China to identify four phases of the outbreak’s impact that retailers can expect to see on both sides of the Atlantic: The first is containment, characterized by large scale stores closures. The second is recovery, when brick and mortar outlets gradually begin to reopen. That is then followed by a return to normal conditions, and finally, sales growth.Nike estimates that China has now progressed through its recovery phase and is returning to normal, with the maker of the Air Jordan and Flyknit sneakers expecting sales growth to come roaring back in early 2021. Clearly, Europe and much of the U.S. is still in the containment phase. Based on the experiences in China, Japan and South Korea, this could last five to six weeks, Nike said.The retailer weathered the China store closures far better than expected — with sales in China down 4% excluding currency movements in the third quarter — and its strategy in the face of the coronavirus offers some interesting lessons for other retail brands in how to cope with an extended shutdown.While stores were closed, Nike fired up online operations effectively. It also activated other digital ways of connecting with customers, such as home fitness apps offered for free. It worked. Weekly active users rose 80% in China over the course of the third quarter, as people were confined to their homes. That in turn drove them to purchase new workout gear, boosting digital sales by more than 30%.It also helps that fitness equipment is still in demand when people are stuck at home. The same can’t be said for many products, such as glam dresses.As the number of Covid-19 cases spreads in other markets, it’s of course not a given that every company can soldier on as seemingly seamlessly as Nike, which has been doing well for a long time. The company generated a better-than-expected $10.1 billion of revenue in the third quarter, even with the impact from China. Nike has a strong balance sheet and is highly cash generative. Even so, inventories rose 7% in the third quarter to $5.8 billion, partially reflecting the drop-off in demand from China. Retailers across the board will be scrambling with how to deal with a surfeit of stock.Nike’s success has enabled it to invest heavily in its digital offering. Its fitness apps, which have come into their own in this crisis, are a case in point. Not all groups have been — or have the resources to be — so proactive. So it’s fair to expect that the companies with strong balance sheets, well-known brands and developed digital offerings should be able to navigate the crisis. Spain’s Inditex SA, owner of the Zara chain, fits the bill here.By contrast, those companies that were already struggling, or burdened with large borrowings, will be particularly challenged by the first phase of containment.As I have noted, the U.S. department stores look particularly susceptible to shuttered stores and shell-shocked shoppers. On Monday, Bloomberg News reported that Neiman Marcus Group Inc., the luxury retailer that has been struggling to ease its $4.3 billion debt load, was mulling options that could include a bankruptcy filing. And another Bloomberg report said J. Crew Group Inc. is suspending the initial public offering of Madewell, its most popular brand, a move necessary to cut its borrowings.Elsewhere, taking into account store leases, as well as other forms of financial obligations and upcoming debt maturities, analysts at Morgan Stanley have identified companies including L Brands Inc., Macy’s Inc., The Gap Inc. and Michael Kors owner Capri Holdings Ltd. as having particularly high levels of leverage, making them potentially less resilient in the current downturn.So while Nike can just do it, some laggards may truly struggle to get through this crisis.This 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.
(Bloomberg Opinion) -- You really can’t blame Mike Ashley for trying.The billionaire founder of Frasers Group Plc tried to keep his sporting goods stores open, arguing that they provided essential supplies of fitness equipment to self-isolating Britons. The retailer has since made a U-turn, closing its Sports Direct and Evans Cycles stores on Tuesday as the U.K.’s nationwide lockdown took effect.Ashley may be everyone’s favorite pantomime villain — and his brash attempt to keep stores open prompted a backlash from politicians — but as usual, the entrepreneur isn’t totally off point. People around the world are asking themselves exactly what they may need to stay healthy and sane as they hunker down at home to ride out the coronavirus crisis.There seems to be some logic missing in the categories that the British government has deemed essential and non-essential. Some are obvious: supermarkets and pharmacies, for example, should stay open. Clothing shops are clearly far less necessary. Many, including Next Plc, Arcadia Group Ltd.’s Topshop and Primark, the budget fashion chain owned by Associated Foods Plc, had already closed their doors.But other categories are more ambiguous. Why are bicycle shops deemed more essential than electronics and home appliance retailers? Dixons Carphone Plc was among the chains lobbying to be given essential status. The group has now shuttered stores. (Frasers closed Evans Cycles anyway while seeking more clarity from the government.)The government argues that bicycle shops are crucial to help workers get around while avoiding public transport. But surely with many Britons now forced to work from home, it’s also imperative for people to be able to buy computer and phone gear they didn’t know they really needed until now. If they’re out buying food, shouldn’t they be able to buy a cable or a printer too? And what if the washing machine breaks? Many large electronics and appliance stores are conveniently located in the same retail parks as supermarkets.True, people can order via the internet, and many sales will indeed migrate to this channel. But there is a danger that with so many online orders for essential items, delivery capacity for anything else won’t be able to keep up.And filling one’s virtual supermarket shopping cart with things like an extension cord or two, in order to collect it from their local store, risks putting more pressure on staff who are busy filling shelves with staple items and keeping up with an influx of panic-buyers.Kingfisher Plc, which owns B&Q in the U.K. and Castorama in France, has closed its U.K. DIY estate while it looks to find the best ways to still provide essential items. Its Screwfix business, which serves tradesmen, has moved to “click and collect” only. That may be a model worth trying to alleviate some of the issues created by the lockdown, as well as opening only a limited number of stores as Halfords Plc is set to do. This could ensure much needed goods are available while discouraging shopping sprees.The debate about the right approach to take comes as retailers are facing a catastrophic loss of trade. Trying to do everything to salvage some sales is only logical. Especially as the shutdown could not have come at a worst time with quarterly rent payments due tomorrow.Of course retailers that do stay open must be conscious of protecting not only customers, by respecting social distancing best practices, but also their own staff, who need gloves and masks for example. At some point the virus will abate, and chains will want to emerge with their reputation in tact.But it’s a difficult balance to strike. And it is one that chains in the U.S. are facing as well as the virus case count increases there, although many companies, including Nike Inc., Apple Inc. and L Brands Inc.’s Bath & Bodyworks, have already closed their stores.It’s important the government help British chains find the equilibrium they need to weather this crisis.This 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.
These two FTSE 100 (INDEXFTSE:UKX) shares could offer recovery prospects in my view.The post These 2 FTSE 100 stocks have fallen 40%+ in 2020. Here’s why I’d buy them in an ISA today appeared first on The Motley Fool UK.
Roland Head picks two quality dividend stocks he think will bounce back and outperform the FTSE 100 (INDEXFTSE: UKX) over the next few years.The post I'd buy these 2 super dividend stocks as the FTSE 100 slump continues appeared first on The Motley Fool UK.
Unfortunately for some shareholders, the NEXT (LON:NXT) share price has dived 44% in the last thirty days. Even longer...
(Bloomberg) -- Simon Wolfson, chief executive officer of clothing chain Next Plc, said this week that the coronavirus pandemic presents the global retail industry with its biggest threat in nearly half a century.The oil price shock of 1973 -- when Wolfson was five years old -- triggered a stock market crash, soaring inflation and high unemployment. The viral contagion could become just as destructive.Across Europe, more than 40,000 workers in retail were told they would be losing their jobs in the past week as stores from Paris to Madrid closed and shoppers were forced to stay home to avoid catching or spreading the disease. Dozens of retailers, including Wolfson’s Next, have withdrawn financial guidance and many deferred or suspended dividend payments to conserve cash.“We need to prepare for a significant downturn in sales for the duration of the pandemic,” Wolfson said.But even as some retailers shut their doors, supermarkets are having to take extraordinary measures to cope with unprecedented demand, as fear of the contagion prompts consumers to stockpile groceries.Duncan Tatton-Brown, finance director at Ocado Group Plc, told reporters that the U.K. online grocer had received such a spike in orders in the past two weeks that its systems had reacted as if the company was under a “denial of service” cyberattack. It has since temporarily taken down its website to help it manage the overload.Prime Minister Boris Johnson announced Friday that pubs, restaurants and cafes will be ordered to shut. That stops short of the mandatory shutdown of non-essential businesses imposed in France, Spain and other European countries, and leaves shop owners to plot their own course.So far, Selfridges, Ikea, Sweaty Betty, and Reiss Ltd., among others, have announced they are closing their British shops temporarily. Others, like Primark and Next, are still open.Greg Lawless, an analyst at Shore Capital, said retailers are reacting differently depending on their business model, the service they provide and their unique circumstances.“Those companies that adapt quickly and do the right thing will survive, but we are in uncharted territory,” he said. “The retail landscape could look very different when the dust settles on this pandemic.”The British Retail Consortium, the trade group, said decisions on store closures were up to individual companies. Its main focus was on helping to ensure that they can access government help quickly.Retailers are also doing the unexpected by cooperating in a way that would have been unthinkable only two weeks ago. In the U.K., the government has temporarily relaxed elements of competition law to allow grocers to swap data on stock levels, share distribution depots and delivery vans, and pool staff to meet demand.At least five grocers in Britain, including the discounters Lidl and Aldi, have announced plans to hire thousands of workers, including those being laid off by rivals, to help them cope with the surging demand for food.Dave Potts, CEO of Wm Morrison Supermarkets Plc, said this week that the chain’s primary role now was to help ensure there was “confidence in food supply, which is crucial in a public health crisis.” He added that Morrison was “putting the assets of the company at the disposal of the country.”In Germany, McDonald’s workers facing reduced hours and closed restaurants can keep working on a temporary basis for grocery chain Aldi, which is seeing surging demand from stockpiling, the companies said in a joint release. The arrangement will allow the fast-food workers to return to their McDonald’s jobs when things return to normal.“Extraordinary times call for extraordinary solutions,” Nicolas de Lope, a spokesman for Aldi, said in the statement.Harrods, the luxury retailer, said Friday it would temporarily close its famous store in London’s Knightsbridge neighborhood, but keep open its food hall -- best known for selling caviar, Wagyu beef, rotisserie chicken, seasonal game and handmade pasta.“Harrods began its journey as a grocer, and we will continue as a grocer,” said Michael Ward, managing director. “We continued to trade and serve our customers during World War II, and only closed for a short period of time after the car bomb attack of the 1980s.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Jabran Khan thinks he sees a unique opportunity in this giant fashion retailer.The post Here's a FTSE 100 share I'd buy in this stock market crash appeared first on The Motley Fool UK.
* ECB pulls out bazooka fund * Sovereign bonds rally * STOXX 600 rises together with Wall Street * FTSE 250 underperforms, Milan outperforms * Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. The STOXX 600 pulled it off together with most of European bourses at the exception notably of the FTSE 250 index which ended the day down 1.1% and is definitely being singled out among its peers.
* ECB pulls out bazooka fund * Sovereign bonds rally * STOXX 600 rises together with Wall Street * FTSE 250 underperforms, Milan outperforms * Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London. EIGHT TAKES ON THE FTSE 250 SELL-OFF (1621 GMT) The FTSE 250 index has sharply underperformed British blue chips and other major European bourses since the coronavirus broke out.
This FTSE 100 (INDEXFTSE:UKX) stalwart is having a great day. Paul Summers thinks the relief will be temporary.The post This FTSE 100 stock has soared 15% today. Can it last? appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- As measures to curb the coronavirus heap pressure on the global retail sector, observers have struggled to quantify the economic ramifications. There are signs that affected companies are offering some useful disclosure that may in turn help sentiment. Adidas AG last week outlined a roughly $1 billion reduction in first quarter sales and $500 million impact on operating profit, but that was before many countries outside Asia started taking aggressive steps in response to the crisis.Now Next Plc has provided more expansive detail about how it sees the months ahead. With shares in most retailers in freefall – Next is down about 40% this year – investors needed to hear something constructive. While the U.K. fashion chain said it could not give guidance for the full year, it has produced a stress test that outlines potential outcomes.In a worst-case scenario, full-price sales would be down by about 1 billion pounds ($1.16 billion), a quarter of its total, which would mean pre-tax profits of just 55 million pounds for the financial year (against 729 million pounds in the year earlier).The company has also set out how it might cope with the crisis financially, given the possibility of extended store closures. It could suspend buy-backs and dividends, delay capital expenditure, sell and lease a warehouse and partly securitize customer debts. Pulling these levers could provide an extra 835 million of cash. Bringing forward its forthcoming sale, and pushing back deliveries of stock would free up another 100 million pounds.These projections exclude any use of government lending or measures to help pay wages, and Next is conservatively assuming no rent reductions from landlords.This disclosure dashboard sets a good example for others to follow. But Next can afford to be upfront with its investors. It is one of the strongest retailers in the U.K. sector.Similarly, Burberry Group Plc provided some near-term clarity, warning that fourth-quarter comparable sales in its stores would be down by 30%, with a 70-80% decline in the final weeks through to its March 31 financial year-end. Like Next, the luxury group has a strong balance sheet, with the company forecasting a cash balance of 600 million pounds before lease obligations.It is understandable why weaker chains may be less willing to quantify the impact on their businesses. But their investors will expect a similar assessment of possible scenarios. And larger, well-resourced chains have no such excuse for not saying more.Take Inditex SA, the world’s biggest clothing retailer. It said the outbreak had cut its sales by 24% between March 1 and March 16. But it didn’t outline the potential full-year impact. This is from a company with record net cash of 8.1 billion euros ($8.7 billion) at January 31.There will be many more tough announcements over coming weeks as retailers and restaurants outline the financial cost of what is happening now. But even if they can’t make exact predictions, they should learn from Next’s example and aim to at least give the market a toolkit for understanding the resilience of their business. Next shares’ strong gain in a falling market on Thursday suggests transparency is rewarded.This 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.
You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. It is not really clear if ECB's 850 bn euros bond buying programme announced last night will buy a day of peace of mind to stock investors as most of Europe is closed for business due to the coronavirus outbreak. Airlines continue to be under pressure and Lufthansa said that the industry may not survive without state aid.
A stock market crash has investors running scared with panic-selling the result. This isn't the answer and there are still quality stocks to be had. The post Don’t panic-sell in the stock market crash! Here are 2 FTSE 100 stocks I’d buy and hold appeared first on The Motley Fool UK.
Rupert Hargreaves looks at three value stocks that could be too cheap to pass up after recent declines, and that offer market-leading dividends. The post 3 value stocks I'd buy after recent declines appeared first on The Motley Fool UK.
Shares in Next (LON:NXT) have outperformed in recent months, and the question now for investors is whether that price strength will continue. Finding stocks wi8230;