We believe that the structural headwinds will persist in the UK grocery mkt but short term numbers will be decent enough tomorrow as LFL sales momentum has been good and management will talk up cash generation. We step aside for a 5.5% loss and will look to re short in due course. CLOSING TESCO…
Data has seemingly turned in both Europe and the US; the poor ISM Manuf has been compounded more worryingly by the ISM non manuf. The German IP print today was the worst month on month drop in 2 years. CESIUSD and CESIEUR have both turned negative after a strong showing in July/August, which drove the…
Beginning this week, Zalando will start offering Abercrombie & Fitch, Hollister and abercrombie kids products through its online stores in the 15 European markets it serves, which will provide Abercrombie & Fitch Co. access to Zalando’s more than 18 million active customers. Negligible financial impact but shows Zalando continues to be Europe’s leading online fashion…
Great set of Q2 numbers. Although expected from the pre release where they upgraded guidance based on inline sales and improving profitability. The operating profit margin widened to 8.4 percent. Sales rose 25 percent to 916.4 million euros, in line with Zalando’s preliminary estimate. They also reiterated their forecast for full-year sales growth at the…
Great set of numbers from Kering. Beats across the board with Gucci really smashing it. Although a lot is in the price now ,we feel that the cash flow generation the Gucci’s ongoing strength will continue to attract money ST. We close our short for a 6.7% ABS Loss. UPDATE KERING FIRST TAKE POST…
A name we have had for a long time and has mainly caused us pain. Given the increasing risks to the investment case, with ENEL/Metroweb, and now ILD likely a new entrant once we get consolidation in Italy TI needs a good quarter and we have been promised one. With FY guidance of at least…
Another one of our Brexit basket. The initial 10% move in sterling equated to a 10% earnings upgrade so the move we have ridden also includes some re-rating as a result of the bond yield move. With that reversing a touch after Friday and sterling moving post May’s confirmation as the new PM, we take…
We have made 21% since we bought this on Brexit Friday. The valuation was too cheap and the GBP exposure clearly a key driver. With Theresa May now likely implemented as the new PM by the end of the week, a key uncertainty is removed and sterling rallies despite a likely rate cut later in…
Great set of numbers from ASOS this morning as they reported a 30% rise in total sales for the four months to 30 June and said it expects full-year sales growth to be at the upper end of the 20-25% range. Sales in the UK were up 28%, while sales in the US rose 53%…
Given sterling listing but non sterling revenues the miners have been well protected since the market collapse post Brexit. But should this continue? When the dust settles I think we will be in an increasingly bullish world for the USD. Not because the US economy is particularly strong but because its various crosses are likely…