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2154 Inside Retail Weekly

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T H I S I S S U E : Shareholders gave Domino's a severe case of indigestion when the fast food retailer reported lower earnings for the 2017 full financial year than the company had forecast last February. Underlining the volatility of the retail stocks on the sharemarket, investors reacted savagely to the retailer missing its profit guidance and sliced $854 million or close to 20 per cent from its market capitalisation. Domino's attempted to cushion adverse reaction to the missed guidance on earnings with the announcement of an on-market share buyback, a 26.9 per cent increase in the final dividend payable to shareholders and assurance that the new financial year had started well. Short sellers on the stock market had a field day when the results were announced last week after stalking Domino's in the past 12 months as the retailer's share price fell from a high of $80.69 in August 2016. Shareholders cut the share price to $40.28 within minutes of the results announcement last Tuesday, but the price recovered by the end of the week to $44.97. Don Meij, CEO of Domino's, blamed some operational issues with the retailer's online platform in France and under performance of the business in that country and in Japan. The Domino's results were always going to test the nerve of investors and financial analysts, given the stress points in the business, including an ongoing audit of employee entitlements across the franchise network and concerns by some franchisees about the viability of their stores. The viability of the franchise stores was inextricably linked to the underpayment ► RRP $14.95 I S S U E 2 1 5 4 Domino's eats some humble pie BY JARED DICKSON INSIDE RETAIL WEEKLY NEWS: Report: Private labels now outpace national brands Customers respond to retailers' new private label strategies. p4 FEATURE: Godfrey charts growth plan The new evolution of the vacuum cleaner retailer has begun, but there's still a way to go. p16 NEWS: TK Maxx hits a high note The US discount retail- er reports an increase in sales since its launch in Australia in April. p3 NEWS: Country Road targets millenials Apparel brand launches new collection, CR Capsule, to appeal to younger customers. p5 FROM THE SOURCE: Justin Dry, Vinomofo The co-founder on the brand's global expan- sion and connecting with the customer. p8 FEATURE: Simone Perele says 'bonjour' Lingerie brand embrac- es omnichannel and expands physical store network in Australia. p12 News and views on the world of retail since 1972 23 AUGUST 2017 V I S I T : I N S I D E R E T A I L . C O M . A U

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