PHILIP DORGAN PANMURE GORDAN
This trading statement is grim, but there is no direct profit warning, in part because consensus continues to fall. We see continued downside to consensus profits for 2014 and 2015, given the likely sales underperformance and the costs of entry into new channels.
KATE CALVERT SEYMOUR PIERCE
Despite soft comparables, Morrison has had another difficult Christmas showing that management’s more aggressive promotional strategy has not resonated with customers...we expect Morrison to continue to underperform the industry with risk to consensus forecasts on the downside.
JAMES GRZINIC JEFFERIES
Morrisons ability to deliver its leading fresh offering to consumers through the fastest growing trading platforms will take time, and in that process trading updates will remain largely unhelpful. However, we believe that signs of progress should become more evident by the start of the second half.