WM Morrison’s Q3 FY19/20 trading update (5 August to 3 November) was ahead of the market’s as well as our estimates. However, the performance in the subsequent nine weeks (Christmas period) has been weak, as management stepped-away from promotional activity, unlike peers. Soft inflation was also not helpful. Sustained lfl growth is quite vital for investor sentiment and management seems to be also on the same page. We take a cautious stance on the company until the Q1 results (the
09 Jan 2020
Top-line growth missing
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Top-line growth missing
- Published:
09 Jan 2020 -
Author:
Nishant Choudhary -
Pages:
3
WM Morrison’s Q3 FY19/20 trading update (5 August to 3 November) was ahead of the market’s as well as our estimates. However, the performance in the subsequent nine weeks (Christmas period) has been weak, as management stepped-away from promotional activity, unlike peers. Soft inflation was also not helpful. Sustained lfl growth is quite vital for investor sentiment and management seems to be also on the same page. We take a cautious stance on the company until the Q1 results (the