Wednesday, 5 January 2011

Evil Empire Profit Warning

As alluded to in comments on earlier post - spotted in The Guardian this morning.

Interesting quote:

Peel Hunt analyst Charles Hall cut his profit forecast for the retailer by £5m to £12m but said the retailer still had "excellent long potential", highlighting a "one-man" store format that offered a low-cost route to expansion.

That would be the one-man shop concept that leads to chronic shop-lifting, stores being closed when the single staff member present needs the toilet and shelves that can't be restocked during working hours?

I'm not sure whether the warning is of much importance, it's been announced on a day that it's been announced that everybody on the UK high street has struggled and the worst English winter since 1963 did semi-paralyse the country from late November to Christmas. HMV are having to close 60 stores so compared to that missing sales projections by 4% might not be very significant.

In an amazing display of synchronicity, it's four years to the very day since they announced an earlier profit warning whilst coming down off the Golden Tit ( (c) Sir Jack Haywood) that was the LOTR line.

And amazingly it's almost ten years since Kirby was laughed out of town for suggesting that Pokemon had decimated their sales. That only seems like yesterday. Ten years? Bloody hell...

EDIT - It's been pointed out on the Oubliette Magazine blog that the 4% shortfall is only up to November 28th which is just before the bad weather started (conveinient eh?). So their shortfall during the times in which people couldn't get to the shops in what was supposed to be the best period of the year for them is yet to be announced. This could put a completely different complexion on things.

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