Investment: Medicine works for Oasis
Tuesday 29 September 1998
The buying mistakes which wrecked trading last year are one of the risks that come with the territory in fashion chains. But Oasis has been beefing up its buying department, introducing better systems and more checks and balances to ensure things do not get so out of kilter again.
So far the medicine seems to be working. Pre-tax profits of pounds 4.8m for the first half were 30 per cent higher than the same period last year, pushing the shares 8.5p higher to 160p.
The key like-for-like figures look encouraging, although the business is trading against extremely weak comparisons. Same-store sales grew by 9 per cent in the first half and are up by 19 per cent in the first seven weeks of the second.
August was grim, with poor weather hampering sales of summer dresses and the like. Oasis marked stock down aggressively and managed to shift most of it before its autumn ranges came in.
Overall, the margin has edged up, which is no mean feat.
Store openings have been pegged back owing to high property rents.
The Coast concessions business, which was acquired for pounds 1m in April, has yet to make a contribution, but will gradually be shifted toward a high-street operation and could look interesting in two or three years.
On full-year forecasts of pounds 14m, the shares trade on a forward multiple of just 9 and yield 5 per cent.
With comparisons weak until next January, the shares look decent value in an unloved sector.
- 1 The black and blue dress: Makers considering a white and gold version
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...