Marks and Spencer

Marks and Spencer (LSE: MKS) is a major British multinational retailer that sells clothing and beauty, home, and food products. This week, three director dealings were carried out. A large number of shares were received in lieu of a cash dividend, but a portion was sold to cover tax and national insurance obligations.

• Name: Stuart Machin
• Position of director: Chief Executive Officer
• Nature of transaction: Free shares
• Date of transaction: 22 June 2022
• Amount received: 203,120 @ nil
• Total value: N/A

• Name: Stuart Machin
• Position of director: Chief Executive Officer
• Nature of transaction: Sales of shares to cover tax and national insurance liabilities
• Date of transaction: 22 June 2022
• Amount sold: 99,121 @ £1.37
• Total value: £135,805.68

• Name: Sacha Berendji
• Position of director: Property, Store Development, and IT Director
• Nature of transaction: Free shares
• Date of transaction: 22 June 2022
• Amount received: 138,115 @ nil
• Total value: N/A

• Name: Sacha Berendji
• Position of director: Property, Store Development, and IT Director
• Nature of transaction: Sales of shares to cover tax and national insurance liabilities
• Date of transaction: 22 June 2022
• Amount sold: 67,399 @ £1.37
• Total value: £92,343.37

• Name: Paul Friston
• Position of director: International Director
• Nature of transaction: Free shares
• Date of transaction: 22 June 2022
• Amount received: 131,691 @ nil
• Total value: N/A

• Name: Paul Friston
• Position of director: International Director
• Nature of transaction: Sales of shares to cover tax and national insurance liabilities
• Date of transaction: 22 June 2022
• Amount sold: 62,264 @ £1.37
• Total value: £88,048.11

Cranswick

Cranswick (LSE: CWK) is a leading UK food producer and supplier of fresh and premium food products. It’s most famous for its meat products. Four directors opted to exercise their share options this week. However, they then proceeded to sell portions.

• Name: Mark Bottomley
• Position of director: Chief Financial Officer
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 31,800 @ nil
• Total value: N/A

• Name: Mark Bottomley
• Position of director: Chief Financial Officer
• Nature of transaction: Sale of shares
• Date of transaction: 27 June 2022
• Amount sold: 16,379 @ £30.82
• Total value: £504,768.02

• Name: Adam Couch
• Position of director: Chief Executive Officer
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 48,100 @ nil
• Total value: N/A

• Name: Adam Couch
• Position of director: Chief Executive Officer
• Nature of transaction: Sale of shares
• Date of transaction: 27 June 2022
• Amount sold: 24,775 @ £30.82
• Total value: £763,515.95

• Name: Jim Brisby
• Position of director: Chief Commercial Officer
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 31,800 @ nil
• Total value: N/A

• Name: Jim Brisby
• Position of director: Chief Commercial Officer
• Nature of transaction: Sale of shares
• Date of transaction: 27 June 2022
• Amount sold: 16,379 @ £30.82
• Total value: £504,768.02

• Name: Chris Aldersley
• Position of director: Chief Operating Officer
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 26,300 @ nil
• Total value: N/A

• Name: Chris Aldersley
• Position of director: Chief Operating Officer
• Nature of transaction: Sale of shares
• Date of transaction: 27 June 2022
• Amount sold: 13,546 @ £30.82
• Total value: £417,460.628

HomeServe

HomeServe (LSE: HSV) offers low-cost home warranty and home repair options. It markets itself as the solution to expensive and inconvenient emergency home repairs. Three massive director dealings happened earlier in the week, as shares were awarded to these directors based on performance conditions.

• Name: David Bower
• Position of director: Director
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 21,119 @ nil
• Total value: N/A

• Name: David Bower
• Position of director: Director
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 10,190 @ £11.69
• Total value: £119,121.10

• Name: Tom Rusin
• Position of director: Director
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 30,619 @ nil
• Total value: N/A

• Name: Tom Rusin
• Position of director: Director
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 11,815 @ £11.69
• Total value: £138,117.35

• Name: Richard Harpin
• Position of director: Director
• Nature of transaction: Free shares
• Date of transaction: 27 June 2022
• Amount received: 34,911 @ nil
• Total value: N/A

Types of shares in a SIP

To provide context, there are a few types of shares within a company’s share incentive plan (SIP). A SIP is an employee plan for companies within the UK to flexibly award equity to employees. Publicly listed companies normally exercise this option because it’s tax-efficient for both the employer and its employees.

In this instance, all the director dealings above occurred with free shares. These shares were acquired by directors under their companies’ share plans. These were either a restricted share plan (Marks and Spencer), or incentive plans (Cranswick and HomeServe).

Share award schemes give employees actual shares rather than share options. The value of shares given to directors here is treated as employment income. This means that it may be subject to tax and national insurance contributions. That is unless the directors opt for an HMRC-approved share scheme, which has its own rules and requirements. Incentive plans give directors shares when they hit certain performance targets. For HomeServe directors, the awards were subject to the company’s earnings per share.

The post Director dealings: Marks and Spencer, Cranswick, HomeServe appeared first on The Twelfth Magpie.

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John Choong has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Marks and Spencer (LSE: MKS) shares are down 40% this year. Despite that, the retailer reported excellent numbers in its most recent full-year results, with plenty of promise for the future. As such, I think a closer look at the company is warranted.

Hungry for more

After years of declining profit margins, Marks and Spencer launched its latest turnaround programme in 2020 under the Never the Same Again name. This bid to improve the brand’s image and business operations looks like it might be working. The FTSE 250 firm has posted an excellent recovery since, with improvements in customer perception of the M&S brand. As a result, M&S Food sales grew 10.8% year-on-year, while expanding its market share from 3.4% to 3.6% over a three-year period. This was also helped in part by its key partnerships with Coca-Cola‘s Costa Coffee and Ocado.

Additionally, the firm saw its operating margins improve in the second half of its financial year. Even so, I was impressed that the board is aiming to further improve its food supply chain through boosting efficiency and cutting costs. Thus, I expect its food prices to become more affordable, allowing it to expand its market share.

Getting the right fit

Marks and Spencer isn’t just its food business, however. One of the main reasons behind its poor past performance can be attributed to the company’s inability to keep up with the times, as far as its struggling clothing offer was concerned.

That being said, the Never the Same Again programme gave a breath of fresh air to the retailer’s clothing segment. Consequently, the division saw its sales figure jump 51.6% on the year and 3.8% against three years ago.

There’s also the positive effect of M&S’s investments in digital. With heavy competition from e-commerce giants and more nimble omnichannel retailers, Marks and Spencer was always going to struggle. However, enhanced investment has made its e-sales more market competitive. In fact, market penetration has almost doubled to 34%. This has been helped by around its 40 clothing brand partnerships. Moreover, the acquisition of Jaeger and The Sports Edit have added even more depth and variety to its offer.

A summer with Marks and Spencer

Since 2018, Marks and Spencer has reduced its debt levels by 12%. What impressed me most though, is its cash position, which has grown by a whopping 455%! Furthermore, profit margins are back to a healthier level of 2.8%, with free cash flow at £1.1bn.

Nevertheless, my concerns of a potential recession impacting sales are shared by the board. Having said that, CEO Stuart Machin stated that its market positioning and business strategy will help mitigate any slowdown. He believes that the company has a strong brand image to help it maintain its market share. He also expects strong tailwinds from travel, leisure, and weddings to keep its sales numbers strong.

Marks and Spencer shares have a price-to-earnings (P/E) ratio of 9. While it’s not seen as a traditional growth stock, it does have an average price target of £1.93. This gives it the potential to rebound by 43% over a one-year period. Therefore, I’ll be capitalising on its low share price and will buy some stock for my portfolio in July.

The post Should I buy Marks and Spencer shares for its growth in July? appeared first on The Twelfth Magpie.

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John Choong has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS, Ocado Group, and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The driver behind this fresh fall? The release of another set of shocking   trading results, an update in which news of a 9.9% pre-tax profits fall for last year materialised.

That said, news of an imminent share issue designed to fund the £750m joint venture with online supermarket Ocado went down like a bucket of cold sick as well.

A doomed endeavour?

As my colleague Kevin Godbold has noted in recent days, the tie-up with Ocado is a funny one as mounting competition among the industry’s major players damages the economics of selling food to the nation.

Indeed, Sainsbury’s bought catalogue retailer Argos a few years back to diversify its operations and reduce its reliance on the high-pressure grocery market. Marks & Spencer is swimming in the other direction and, most probably, into massive danger.

What’s more, it’s forking out a huge amount of money for the privilege — the 2.3% like-for-like sales decline at its Food division last year illustrates just how difficult thriving in this market can be.

Would the Footsie firm have been better off concentrating all its money and efforts into resurrecting its traditional clothing operations?Probably so, in this Fool’s opinion, given the high chances of failure and the need to get the core firing again.

Dividends to fall again?!

The boffins at UBS expect more pain to come as sales dive again and the retailer battles tax costs and anticipated dilution from the rights issue too. Earnings are expected to slip to 20.1p per share in the period to March 2020, down 21% year-on-year, a prediction which, if proved correct, would mark the fourth successive decline in annual profits.

And the frightening predictions don’t just end here. Reflecting the probability of another hard year of revenue drops and the cost of more heavy restructuring (like the planed closure of dozens of more stores), UBS is expecting the full-year dividend to fall again, to 11.2p per share, from 13.9p last time out.

Nobody ever said Marks & Sparks’s turnaround was going to be easy. But even the most patient of shareholders must be losing faith by now. Since hitting record peaks in May 2015, it’s been nothing but bad news and the stock price has dived 60%.

Attempts to revamp the quality, styling, and to ultimately salvage the reputation of its womenswear division, have hardly made a scratch. Efforts which have been made all the more difficult as competition in the mid-tier clothing space has intensified and the Brexit issue has kept consumer spending power under the cosh.

With its drive to double-down into the grocery market piling on the risk too, I’m happy to look past the company’s low valuation, as illustrated by a forward P/E ratio of 12.3 times, and it’s big corresponding dividend yield of 4.5%.

There are scores of other dividend shares I’d much rather buy before this battered retailer.

The post More bad news for this FTSE 100 stock: dividends tipped to be slashed again! appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Then again, maybe you’ve been eyeing the shares for some time and see the recent fall as an opportunity to buy into the story at a better valuation. I wouldn’t, and here’s why…

Dire results

Roland Head covered the report yesterday, and one thing that sticks out in his article to me is when he said of the M&S food offering that “promotional activity has been reduced and prices have been cut on popular items, bringing them closer to mainstream supermarkets.”

To me, that speaks volumes about the firm’s decline. One of the big differentiators M&S traditionally enjoyed was that its food offering was regarded as something special by customers and therefore the company could charge a premium price for it.

For years, I reckon, many shareholders and potential investors had high hopes that growth in the Food division would overtake the decline in the Clothing and Home division. M&S itself seems to be clinging to that dream with one sub-heading in yesterday’s report reading “Protecting the magic and modernising the rest in Food.”

The trouble is, there isn’t any magic to protect any more in my opinion. Once, M&S provided food of a quality you just couldn’t get from mainstream supermarkets, but things have moved on. The supermarkets raised their games, and the quality available in the food they sold. Now, there’s precious little to differentiate one supplier from another. Tesco, Sainsbury, M&S, even Lidl and Aldi. You’d be hard pressed to tell the difference in a blind tasting of many products.

Decline and poor business economics

M&S today is a story of falling revenues, profits and cash flow and of store closures and declining dividends for shareholders. Trying to turn the old dinosaur around strikes me as a difficult and thankless task. M&S, once mighty, now seems to me like an anachronism set to go the way that many high street retail names have gone before – down and out.

One big hope for recovery is the recent 1-for-5 Rights Issue that raised just over £601m “to fund the joint venture with Ocado Group.” The idea is to create “the UK’s leading pure-play digital grocer.” But I’m sceptical. I don’t think grocery is a very attractive sector to get into, whether it’s done via supermarkets or online. Just look at the likes of Tesco, Sainsbury and Morrisons. Those firms have been struggling because of the fundamentally poor economics of the industry and the vulnerability of players in the sector to attacks from disrupting competition.

M&S is not the beast it used to be and probably never will be again. I’m avoiding the shares and hunting for investments in better companies.

The post Why I’d forget Marks and Spencer’s shares following this recent news appeared first on The Twelfth Magpie.

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Kevin Godbold has no position in any company mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Clearly, there could be more trouble around the corner as a toughening economic landscape in the UK dents shopper buying power and consumer confidence, a stage that could worsen still further should a disorderly Brexit materialise in the months ahead.

The outlook for its home territory is not the only cause for concern, however, as decelerating economic activity on the continent is also smacking ASOS’s bottom line. In the continental engine rooms of Germany and France — territories which account for three-fifths of total EU sales — trading has become “significantly more challenging” of late, ASOS also advised.

City brokers have been furiously slashing their earnings forecasts in the wake of these scary numbers and a 28% drop is now predicted for the fiscal year ending September 2019. Given the worsening momentum in the online fashion giant’s core territories, allied with its elevated valuation, a forward P/E ratio of 34.6 times, the retailer is in clear danger of more share price pain in the months ahead.

Under more pressure?

That said, I’d much rather buy this business today than FTSE 100 clothing and food seller Marks and Spencer Group (LSE: MKS), even though the latter carries a bargain-basement prospective P/E multiple of 10.4 times and comes packed with an inflation-smashing 7.5% dividend yield.

The number crunchers are presently expecting a 13% earnings fall in the 12 months to March 2019, a forecast which, like that of ASOS, has also been downwardly revised in recent weeks. And as I’m expecting another disappointing trading release when it updates the market on Christmas trading on Thursday, January 10, I’m expecting further markdowns in the near future and, with it, a fresh downleg in the share price. A raft of successive, disappointing market updates caused M&S’s market value to plunge almost a third in 2018.

I’ve moaned time and again about how Marks & Spencer’s management teams have failed to effectively read the pulse of British fashion, leaving rails and rails of clothing unsold in its stores. With competition increasing for its general merchandise and food divisions, and the economic landscape becoming more and more difficult, I’m not expecting the Footsie firm to break out of its tailspin, at least not any time soon.

Conversely however, I’m tipping ASOS to ride through any current hiccups and post decent profits growth over the long term because of its robust position in the online clothing segment. For this reason it’s a much better buy than M&S, certainly in my opinion.

As Next’s update this week showed, internet-focused retailers remain well placed to exploit the changing shopping habits of we consumers, this Footsie firm advising of a 15.2% explosion in online revenues in the two-or-so months to December 29. And thanks to the popularity of its fashions and its broad geographic footprint, I’m confident it should still produce scintillating profits growth in the years ahead.

The post I’d much rather buy ASOS than these 7%+ yielding FTSE 100 dividend stocks appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Apple and ASOS. The Motley Fool UK has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The largely bricks-and-mortar-based retailer is leaning far forward into headwinds that ravage the sector. The onslaught from internet and discount retailers is relentless. They are disrupting the traditional high-street retailing businesses that many of us are used to – make no mistake about that.

Disappearing retailers

Names such as Woolworths and BHS (in its high street form) are long gone. Others, such as Debenhams, appear to be teetering on the brink. But what will become of good old M&S? The company has been struggling for years, never quite managing to pick up the mojo it once clasped so firmly. One good indicator of a firm’s performance and its outlook is to examine the directors’ decisions surrounding the dividend. It’s not good news. The dividend is more-or-less stuck in the mud with City analysts predicting the 2020 payment to be hardly any bigger than the 2015 one.

In the long run, my guess is that we won’t see M&S go bust because it has such a trusted reputation and brand image to exploit, but what we are likely to see is a managed decline and shrinking of the business. If the firm could change to embrace the new world order in retailing, surely it would have done so in a meaningful way by now. I’m sure there will be mini-recoveries along the way, but I reckon the long-term operational and share-price trend is down, and that’s not a good basis for an investment, so I’m looking at N Brown Group (LSE: BWNG) instead.

Moving with the times

I like the way the fashion retailer, which targets the plus-size and more mature customer markets, has migrated its sales from catalogue shopping over to internet shopping during the last few years. The company is moving with the times, and today’s full-year results reveal that 73% of orders arrive via the firm’s websites, with 76% of all traffic originating from mobile devices. N Brown is plugged into the modern world.

Yet the trading backdrop has been “challenging.” Nevertheless, the company managed to grow its revenue 3.9% compared to the year before and adjusted earnings per share moved 4% higher. The directors held the full-year dividend flat, signalling a cautious outlook. City analysts following the firm expect earnings to decline 1% for the year to February 2019 and to rise 4% the year after that.

N Brown earns its profits both from product retailing and from providing credit for customers to finance their new goods. The year saw “strong performance” in its financial services operation, driven by “continued improvement in the quality of the loan book, together with a reduction in arrears as a result of minimum payment changes.” 

Meanwhile, it’s hard to make a case for the shares being expensive. Today’s 205p puts the forward P/E ratio for the trading year to February 2020 at just below nine, and the forward dividend yield runs a little over seven. My guess is that N Brown will emerge as one of the retail winners over the years to come.

The post Why I’m ignoring the Marks & Spencer share price and going for this recovering retailer instead appeared first on The Twelfth Magpie.

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Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

To recap, the FTSE 100 bank was hauled over the coals by the Department of Justice over allegations concerning the sale of residential mortgage-backed securities between 2005 and 2007. Today’s deal “resolves all actual and potential civil claims” by the justice department, Barclays said in a statement, and the $2bn penalty is viewed as being rather light in some quarters.

Commenting on the matter, chief executive Jes Staley said: “The completion of our restructuring in 2017, and putting significant legacy matters like this one behind us, mean Barclays is well positioned to produce stronger earnings going forward, and to start returning a greater proportion of those earnings to our shareholders over time.” 

Too much risk

While the news has brought more buyers out in end-of-month trading, I am not one of those fancying a slice of Barclays right now.

Firstly, the bank still faces the prospect of further significant misconduct charges from elsewhere, whether it be related to the Serious Fraud Office investigation over a loan it made to Qatar around the time of the 2008 financial crisis, or further heavy provisions related to the long-running PPI mis-selling scandal (for which it booked at extra £700m worth of provisions in 2017 alone).

Away from this, I am also concerned over the impact of a slowing economy on Barclays’ profits should bad loans rise and revenues fall. This could put extra pressure on the company as it faces stricter stress tests from the Bank of England from 2018 onwards.

City analysts are expecting earnings at Barclays to explode to 20.4p per share in 2018 from 3.5p last year, and then to rise to 23.5p. However, given the bank’s fragile balance sheet and the strong possibility that these medium-term forecasts could be blown wildly off course, I am happy to forget about its low forward P/E ratio of 10.2 times and give it an extremely wide berth.

Leave it on the shelf

Another Footsie share I wouldn’t touch with a bargepole today is Marks and Spencer (LSE: MKS).

As if the retailer’s plan to transform its underperforming fashion lines wasn’t difficult enough, a backcloth of sliding retail indicators isn’t making things any easier. Just yesterday the  Confederation of British Industry announced that retail sales in March “were significantly below normal” for the time of year and were at their weakest for close to five years. And the situation does not look likely to improve any time soon as economic conditions seem set to remain tough.

City brokers are expecting M&S to follow a predicted 9% earnings slump for the year to March 2018 with a further 1% fall next year. However, I see a broad margin for medium-term estimates to be cut down even further, making — like Barclays — the business an unattractive pick despite its cheap valuation, a P/E ratio of 10 times for next year, and its gigantic 6.9% dividend yield.

The post A FTSE 100 share I’d sell along with Barclays plc appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Transforming its clothing lines has long been a problem amid charges that its ranges are both old-fashioned and expensive, particularly when lined up against what’s found over at the likes of Next and H&M.

And Marks & Spencer’s November market update showed that these accusations remain very much alive and well. While revenues have improved over the most recent quarter, the company still endured a 0.7% decline in like-for-like sales for the six months to September.

Food failing

To add to the its headaches, the allure of its previously-robust Food arm is also declining slightly. Like-for-like sales here dropped 0.1% during April-September, its performance again lagging that of the wider grocery industry. M&S noted noted the detrimental impact of the online home delivery and convenience segments on sales, and the price pressures that are driving customers into the arms of the discounters.

The FTSE 100 firm plans to slow the rollout of its Simply Food outlets, and to change its product proposition with a greater focus on value. This is likely to put further stress on already-pressured margins and higher costs and increased promotions in the first half have caused M&S to say Food margins will fall between 75 and 125 basis points in the full year.

A bleak outlook

Falling demand for its edible items is the last thing Marks & Spencer needed given its ongoing failure to attract fashion shoppers.

Chief executive Steve Rowe recently commented: “The business still has many structural issues to tackle as we embark on the next five years of our transformation” and he is not kidding, the challenging retail environment making it even harder to achieve its much-awaited turnaround.

The City is expecting earnings to drop 9% in the year to March 2018, and the likelihood of any bounce-back thereafter is built on pretty sandy foundations, in my opinion. I reckon investors should give the company a wide berth despite its low paper valuation, a forward P/E ratio of 10.8 times.

Brown sugar

Marks and Sparks’ poor profits outlook, expensive transformation programme and colossal debt pile (net debt stood at £2bn as of September) leave dividends in danger of falling short of forecasts. Analysts are expecting an 18.4p per share reward, creating a jumbo 6.2% yield.

Instead, I believe those seeking a cut-price dividend star should take a look at N Brown Group (LSE: BWNG). The FTSE 250 retailer is expected to deliver a 14.22p per share reward, resulting in a monster 5.2% yield.

Although the retailer is not immune to the broader pressures washing over the UK high street, its focus on the ‘plus size’ niche segment and under-served 50-plus market puts it in a much stronger position than M&S to ride out the storm and deliver long-term earnings growth. Indeed, sales at its Jacamo and Simply Be fascias increased 6.7% and 21% respectively during March-August.

The City is expecting earnings to slip 3% in the 12 months to February, but I am expecting earnings to flip higher thereafter, helped by its increased focus on online retailing. I reckon a forward P/E ratio of 12.4 times makes N Brown worth a serious look today.

The post Why I’d sell this FTSE 100 shocker to buy this dividend star appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.