New Look

New Look seems to have turned a corner since it entered into a CVA earlier on this year and announced the closure of its China operations.

According to its first half results announcement, it managed to make some headway in the key womenswear segment and has generally delivered on costs savings targets thus far.

However, the turnaround still has a way to go yet as it will continue with plans to shut at least 60 of its 593 stores after the Christmas shopping period is over.

Primark

Elsewhere, Associated British Foods UK fashion retailing brand, Primark unveiled some solid numbers and plans, unlike many of its rivals, to INCREASE its store space both in Europe and the UK, where its 160,000 sq m Birmingham branch will be its biggest shop so far.

Fun fact: Primark is the UK’s third biggest clothing retailer behind Next and Marks and Spencer.

Papa John’s

The second thing I wanted to touch on today was Papa John’s in America. Basically, its shares have been on a bit of a rollercoaster ride since founder Papa John himself, John Schnatter, was roundly admonished for criticising the NFL’s handling of its national anthem protests last year.

He had to step down as CEO because of that and then made things worse by using the “N” word during a marketing call in July, which led him to leaving his post as chairman in July.

Actually, shares have been bouncing back since August as it is clearly an attractive takeover target.

The company announced a fourth consecutive quarter of falling sales yesterday, so it seems that it is absolutely ripe for a takeover in my opinion.

Yes, “Papa” John still has 31% of the shares, but it would be difficult for him to return in any meaningful capacity and there is a lot of upside to be had here.