MKS Trading Statement

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idpickering
Lemon Slice
Posts: 282
Joined: November 4th, 2016, 5:04 pm

MKS Trading Statement

Postby idpickering » January 12th, 2017, 10:22 am

Steve Rowe, Chief Executive, said:

"I am pleased with the customer response we have seen to the changes we are making in line with our plan for the business. I would like to thank the whole team for their hard work over this busy period.



"In Clothing & Home, better ranges, better availability and better prices helped to improve our performance in a difficult marketplace. We also continued to substantially reduce discounting, including over Black Friday.



"Our Food business continues to grow market share with customers recognising our product as special and different. Our Simply Food store pipeline remains strong.



"As we look forward, our Q4 reported numbers will be adversely affected by sale timing and a later Easter. Against the background of uncertain consumer confidence the business remains focused on delivering the strategic actions announced last year."



Group sales were up 5.9% on a reported basis in the 13 weeks to 31 December.



Clothing & Home sales rose by 3.1% of which c.1.5% was due to the shift in reporting period, which led to the inclusion of five additional days of the December sale. Clothing & Home LFL sales were up by 2.3%. We substantially reduced sales on promotion in the period, with many fewer category promotions particularly over Black Friday. Stock into sale during the quarter declined by c.7% with one fewer clearance event than last year. As a result of these actions, we saw a further improvement in full price sales.



Food sales rose by 5.6%, with LFL sales up by 0.6%. The quarter was characterised by a slightly later build to peak, as a result of Christmas Day falling on a Sunday. We continue to grow market share, with customers appreciating the quality, innovation and newness that distinguish our food. New Simply Food stores continue to perform well.



International sales were up 2.9% at constant currency benefiting from earlier shipments of spring ranges to our franchise partners.



Full year guidance remains unchanged. We continue to manage the business for the uncertain consumer outlook.



We will report our Full Year 2016/17 results on 24 May 2017."

http://www.investegate.co.uk/marks---38 ... 00089583T/

ap8889
2 Lemon pips
Posts: 135
Joined: November 4th, 2016, 10:55 am

Re: MKS Trading Statement

Postby ap8889 » January 12th, 2017, 1:04 pm

Well, it's a decent enough show.

Despite increased LFL sales and less discounting profit guidance is the same. That sucks.

idpickering
Lemon Slice
Posts: 282
Joined: November 4th, 2016, 5:04 pm

Re: MKS Trading Statement

Postby idpickering » January 12th, 2017, 1:48 pm

ap8889 wrote:Well, it's a decent enough show.

Despite increased LFL sales and less discounting profit guidance is the same. That sucks.


I don't hold MKS currently, but have in the past. It's unlikely I'll buy into the MKS story again, preferring the more general offering supplied by SBRY. It seems retail is under a cloud currently, and they do say buy when there's blood on the street don't they?

Ian.

ap8889
2 Lemon pips
Posts: 135
Joined: November 4th, 2016, 10:55 am

Re: MKS Trading Statement

Postby ap8889 » January 12th, 2017, 2:00 pm

Yes, and retail seems to be out of favour right now with some big names like Next falling to tempting levels.

I just can't get excited enough about the retail sector to buy much more than I already holdwhen Amazon and the likes of Boohoo are clearly taking much business from the high street. Paul Scott highlighted Shoezone yesterday as a pretty unexciting low rent retailer which seems to be churning out dividends. I can see shoes as being an area where a high street branch makes sense, so may look closer. Laura Ashley also just looks too cheap to me. Other than that, I am putting my money into other sectors.


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