Retail

Watch industry sales running slow

8 Aug 2003

There may be signs of a pickup. But hopes that watch sales will recover back to their bull market peaks seem destined to be dashed. Swatch, Bulgari and Richemont s watches have not had an easy time of late.

Sainsbury hit by double whammy

31 Jul 2003

The UK supermarket chain is losing market share and has been leapfrogged by cheaper rival Asda. It has been trying to shore up its position by buying things. But the regulators are sticking a spanner in the works.

Debenhams criticised for selling on the cheap

30 Jul 2003

The department store has recommended Permira s 425p a share offer. But shareholders fear that it undervalues the company. While the offer isn t generous, lambasting the board doesn t seem terribly fair.

Debenhams pays bidder to rival Permira

27 Jul 2003

The move is designed to procure a higher bid. But it looks a dubious use of sharholders' funds. It breaks the cardinal rule that break fees should be linked to a bid being made. The move is designed to procure a higher bid. But it looks a dubious use of shareholders' funds.

Debenhams should recommend Permira offer

25 Jul 2003

The private equity firm is putting it on the spot by demanding a recommendation before a rival bidder is ready. But it wouldn't be in shareholders' interests if Permira walked away.

LVMH’s Q2 sales slump 15%

24 Jul 2003

While Louis Vuitton continues to defy gravity, the luxury group lesser brands were hit by the horrible environment. These troubles won t stop LVMH from boosting H1 operating profit 3%. But its diversification strategy raises vexing questions.

Sainsbury’s sales still weak

23 Jul 2003

The UK retailer is in the last year of its turnaround plan. Yet its strategy is not delivering topline growth. Worse, excluding petrol, likeforlike sales actually contracted. That leaves the group relying on cost cuts to boost profits.

M&S’s bounce is weaker than hoped

16 Jul 2003

Nonfood sales growth at the UK retailer is still pretty sluggish especially considering the sunny weather. Tighter stock management points to healthy margins. But hopes of a continuing salesled recovery are fading.

Baugur v Waterstone: one of them has to win

8 Jul 2003

The Icelandic retailer and British entrepreneur are both better known for failing to buy businesses in recent years. At least by going headtohead for Hamleys, one of them gets to win.

Gucci gets handbagged

2 Jul 2003

The fashion group had a terrible quarter as sales slumped and it slipped into an operating loss. Gucci blames Sars, the war and currencies, but still seems to have suffered more than its rivals.

Debenhams gets second private equity approach

30 Jun 2003

Investors who feared the retailer s arrangements with Permira might shut others out will be relieved that CVC and TPG have teamed up to bid. An auction now looks on the cards.

Dixons wrong-foots short-sellers

25 Jun 2003

The UK retailer's results were only slightly positive. But that was enough to sting those who have been betting on yet more bad news. Now that the dividend has been jacked up and the stock yields 6%, shortsellers must be running for cover.

Safeway shouldn’t expect a whole bunch of bids

24 Jun 2003

The UK's Competition Commission is hinting at playing hardball with the big grocers planning bids for the British supermarket chain. Hypothetically, it says it might even block bids outright. It could also force buyers to sell stores, setting the scene for a carveup.

H&M’s weak sales run continues

18 Jun 2003

May hasn t been a good month either. This could just be a protracted blip. But investors are itching to see a pickup. The conundrum is that the Swedish retailer is managing stock levels exceptionally well, and gross margins are powering ahead.

Kingfisher limbers for the splits

17 Jun 2003

The UK retailer is demerging its Kesa electricals division on a high. The stock has bounced by some 50% since January. The DIY business has been pretty resilient, but hard times lie ahead for Kesa.

Inditex clears Q1 hurdle

13 Jun 2003

Sales are holding up. But Inditex s margins are still coming under pressure. The Spanish retailer s firstquarter results reassured the market. Perhaps its troubles last year were just a blip.

Tesco dips a toe into Japan

10 Jun 2003

The UK retailer has bought a small chain of convenience stores, avoiding the temptation to follow biggerthinking rivals. Tesco isn t taking risks in the notoriously difficult Japanese market. But it can use its toehold to try out ideas.

Boots stuck in a bind

5 Jun 2003

The UK chemist has had a decent year for sales. But that s largely been at the expense of its margins. Growing the core business much faster will be an uphill struggle. Profitability seems set to slide further.

PPR gets some of its money back from Gucci

28 May 2003

The French group put $3bn into the fashion group in 1999. It is getting about $1bn back. That doesn't make much difference to PPR's obligation to buy Gucci. But it makes sure the cash isn't spent.

Barclay twins try to strong-arm regulator with GUS buy

27 May 2003

It looks pretty daring to snap up the home shopping unit without making the deal conditional on regulatory approval. But the gamble may pay off if the regulator accepts the only alternative to the deal is closure.