Investors' Chronicle Greggs, UK tech stocks & Watches of Switzerland: The Companies and Markets Show
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Jul 4, 2025 Julian Hofmann, a market analyst with expertise in consumer sectors, discusses Greggs' recent sales downturn due to heatwaves and supermarket competition, questioning the bakery's growth strategy. The conversation shifts to undervalued UK tech stocks, emphasizing their untapped potential and the 'mindset gap' that has investors favoring US companies. Lastly, Julian unpacks the challenges facing Watches of Switzerland, including margin pressures from tariffs, while sales are slowly recovering. His insights shed light on the cautious sentiment gripping the luxury retail market.
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Greggs Faces Sales and Strategy Challenges
- Greggs' like-for-like sales are falling due to summer heatwaves and increasing supermarket competition.
- Expansion strategy is questioned as older outlets need refurbishing rather than opening new ones.
UK Tech's Hidden Value and Challenges
- UK tech stocks trade at a big discount compared to US counterparts due to cautious investor mindset.
- Intellectual property value is often overlooked, impacting market valuations negatively.
Watches of Switzerland Margins Hit
- Watches of Switzerland's sales grow but margins suffer due to US tariffs on Swiss imports.
- The company’s future margin gains depend heavily on tariff negotiations and market adaptation.