Case Studies

Works Group

Our short/sell recommendation generated over 35% investment returns for clients over the last 6 months on weaker than expected trading in the UK.

 

Over the last 6 months, Works Group shares have tanked more than 35% after the retailer of gifts, arts, crafts, toys, books and stationary continued to report disappointing sales and profits which were lower than market estimates.

 

Woozle’s proprietary primary research has continued to uncover decelerating LFL sales trends across their UK estate of approximately 500 stores with most locations seeing weaker YOY foot traffic, average customer spending activity, higher promotional/discounts, and larger levels of surplus/unsold stock levels. More intensive store-level promotional activity and a failure to capitalise on mega trend items in the last 6 months were major factors in our short/sell recommendation to clients. Most customers continue to shun the high-street, opting to shop online or at competitor outlets and guide that many of the Works Group sites are located on unfavourable retail lots which are under pressure from mass competitor store closures.

 

Our clients were able to initiate or scale their short positions with enough time to capitalise on a more than 35% drop in the share price over the last 6 months.

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