HMV on the brink


#81

That sounds like you have a new favourite in the 00’s?


(Liam) #82

In 2019 it’s more, ‘who are the Spice Girls’?


(l8n.me) #83

Sadly only one of them appreciates that… :joy:


#84

Mel C is the only one I like because she can actually sing. Felt sorry for her :joy:


(Liam) #85

Little soft spot for Mel C too.


(Liam) #86

Some interesting takeaways from Next’s results:

  • Sales online were up 15.2%, year on year, between 28 Oct and 29 Dec
  • Bricks and mortar sales, during that period, were down 9.2%.
  • Full-price sales at the were up 1.5% across the business.
  • Expected annual profit of £723m, down from £726m last year.

So, as this thread’s broadly talking about the state of the high street, we have to acknowledge the bad news: Next’s high street sales were worth nearly ten per cent less than they were in the same period last year.

It was broadly in line with the expectations. Looks like this winter is going to be a hellish period for the high street.

Online sales were up 15 per cent, which is great for the business, but less good for the long-term viability of bricks and mortar shopping. Nobody will be surprised by this, however.

The firm’s overall profitability has slipped slightly, down £3m on the previous year. It’s small change when you’re filing profits in excess of £720m, but when your overall sales are up and you’re selling more of your gear at the full price - shouldn’t it be a concern that you’ve banked less cash?

Are next contracting margins on their everyday prices to shift more units? Have their costs suddenly increased? - You’d hope not considering their sales are shifting online and they now have fewer costly stores than they used to.


#87

Possibly the weaker pound has impacted their profit margins given they probably mostly buy in dollars and euros and sell in pounds?


(Liam) #88

Reasonable point - as somebody who’s saving for a wedding that’s going to be paid for in another currency I was bricking it every time I saw the line ‘Breaking news: Prime Minister to make statement from Downing Street’ appear on the news channels last year.

When you’re buying and selling in the quantities firms like Next are then that’s going to be some serious wonga.


#89

Exchange on Monday. For some reason the £ jumped over the last 2 days and assuming it’s all good on Monday, you’ve got just about the best exchange rate you’re going to get (imo)