Morrisons Turned a Corner, Gained Share: Beesley

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Sept. 12 (Bloomberg) -- Henderson Global Investors Head of Global Equities Matthew Beesley discusses what is expected from Closely-watched Morrisons earnings with Mark Barton on Bloomberg Television's "Countdown." (Source: Bloomberg)

A closely watched set of earnings.

An uptick in the british it, and he -- economy.

Hello, matthew.

It did come out in july, raised its pretax profit target.

What is the message we will learn?

A challenge they have got issues with in investor trading.

They have had to respond to that investor chair.

The recent data suggests they have.

It is ultimately very focused on the extent to which the activity will lead them to a recovery.

What is the market share story at the --? -- story?

How are they coping being squeezed by both sides of the retail spectrum?

Not well.

That is the problem.

They are trying to move upscale.

The guys at the bottom -- they have stocks to gain back share at the higher end.

A bit of share at the lower end.

The strategy of capturing the lower middle ground is working.

Focus on the number, which will show less of a decline.

They were late into the web market.

100 $70 million deal.

Are they late to the party?

They are not the first, but not so late.

Statistically, this has been a very young market, in the infancy of its growth.

We will hear much more today about that.

They said it would be january before a situation where they could tell investors what is going on.

It is a big part of the story that they could recapture some of that.

Shares are up by 13% year to date.

The ftse is up by 12%. it is outperforming the ftse 350 food and drug index up by 15%. do you like any of the big food super not -- supermarket chains?

We do not find them particularly miss valued.

We talked about the uk recovery, which is increasingly the debate.

The speed of that recovery, this type of stock gets left behind.

There are businesses, other companies, that have more leverage.

Does that -- to the clothing industry?

Do the general retailers fall into that category, as well?

A record high, up 40% today.

The general retailers are up by 38%. they are on a good run.

They are more leveraged in economic recovery.

In the last five years, it is up from 10 pounds to 50 pounds.

Clearly doing a lot of things right, as you point out.

They raised their guidance forecast for this year.

Every avenue they are pushing on, there is more they can do.

Very good for fighting more products to customers.

Less products at a discount.

Increasingly, they are talking about increasing their store space in out-of-town shopping malls.

Opening these, which would be leveraged to the housing market.

Is that a good move?

Higher-margin, the two.

The issue is stock trading at 16 times forward earnings, while these companies will be geared into a uk company -- thank you for the moment.

More from matthew next.

We will have a chat about what

This text has been automatically generated. It may not be 100% accurate.


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