Thursday, March 01, 2007

Jessops March Madness!

A share price graph from the BBC News Website at 2pm this afternoon. As I write this Jessops shares are trading at 52.50p, yep it must be the latest promotion in-store: March Madness. This sees memory card prices slashed, which at last makes them more competitive.
The further decline in share price was not unexpected, according to retail analyst Nick Bubb of stockbroker Pali International.
"The share price probably should have fallen further on Wednesday," he said.
"The credibility of the management has been badly damaged and I'm not surprised they've fallen further."
On Wednesday, Jessops said the digital camera market had continued to deteriorate during January. Paul Rossington, an analyst at KBC Peel Hunt, said the latest setback was damaging to credibility, but management, led by Chief Executive Chris Langley, should stay on.
Seymour Pierce's Richard Ratner added: "I think they were as surprised as anyone; there is no visibility going forward. It is very much the market conditions."
Jessops has decided to drive sales at the expense of margins in an attempt to recover, but Ratner warned this was not an easy strategy. "Will the price reductions drive sales and, if they do, can the margin be recovered next year?" he said.
(This report compiled from BBC News and Reuters both on-line.

No comments: