The Q1 performance was softer than our expectations. Management’s strategy to invest in prices is vital to blunt the increasing competition in the UK. Although the shop-in-shops of Argos are performing remarkably well, the recent recovery in general merchanting and clothing is fragile, in our opinion. Any positive news from CMA (about the proposed merger with Asda) or an improvement in grocery lfl would be key upside triggers, in our opinion. No change in the stock recommendation.
05 Oct 2018
Weak Q1 results
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Weak Q1 results
J Sainsbury plc (SBRY:LON) | 259 -9.8 (-1.4%) | Mkt Cap: 6,153m
- Published:
05 Oct 2018 -
Author:
Nishant Choudhary -
Pages:
3
The Q1 performance was softer than our expectations. Management’s strategy to invest in prices is vital to blunt the increasing competition in the UK. Although the shop-in-shops of Argos are performing remarkably well, the recent recovery in general merchanting and clothing is fragile, in our opinion. Any positive news from CMA (about the proposed merger with Asda) or an improvement in grocery lfl would be key upside triggers, in our opinion. No change in the stock recommendation.