New brands ad­ding to prof­its

Finweek English Edition - - MARKET PLACE -

Tru­worths was an­other re­tailer with a trad­ing up­date and here like-for-like growth was down 3%, while prod­uct in­fla­tion was 15.5%. So a very large dent in sales. It does have sev­eral new brands ad­ding to the prof­its. Al­though the weaker pound is hurt­ing the Of­fice ac­qui­si­tion, the pound won’t be weak for­ever. I al­ways com­ment that large ac­qui­si­tions, such as Of­fice (and David Jones with Woolies) are never as great or as quick to add prof­its as man­age­ment says, but given time, good man­age­ment will do good deals that will add value. Over­all, while re­tailer up­dates have been bleak, share prices have either stayed flat or bounced higher as the mar­ket either thinks the worst is be­hind us, or that the up­dates were not as bad as ex­pected.

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