Euro retail sales rise at quickest pace since 2007 June 5, 2014 RETAIL sales in the Eurozone rose by 2.4 per cent in the year to April, the strongest increase in seven years, and a positive indication that consumers in the currency union are beginning to increase their spending. Of the region’s major economies, France saw the strongest increase, with a 2.3 per cent spending bump. German [...]
Best of the Brokers for 06 June 2014 June 5, 2014 To appear in Best of the Brokers, email your research to notes@cityam.com POUNDLAND JP Morgan, which last month won the joint broking mandate for Poundland, has upgraded the retailer from “neutral” to “overweight” with an unchanged price target of 377p. The broker thinks the effects on Poundland of Tesco’s pound aisle trial are likely to [...]
Retailer share prices are crashing. Here’s what you need to know about the sell-off June 5, 2014 An unexpected profit warning from online retailer Asos has investors very worried about the health of the sector generally. Asos shares opened more than 40 per cent lower after it announced that it had been forced to slash its full-year profit margin guidance. The key paragraph comes from CEO Nick Robertson: The resultant higher mix [...]
Asos share price crashes 42pc as it slashes margin guidance June 5, 2014 A shock announcement from Asos this morning. The online fashion retailer has cut its full-year operating profit margin from 6.5 per cent to 4.5 per cent. Investors have reacted with extreme wariness – the share price has just slumped over 42 per cent. Asos has been heading off the impact of a flurry of competition, heavy [...]
What you need to know before the open June 5, 2014 A steady start’s expected for European stocks this morning, as investors hold their breath ahead of the much-awaited European Central Bank’s policy meeting at lunchtime. We’re not expecting much when it comes to the latest interest rate decision from both the Bank of England, but anticipation is high around the ECB in terms of what [...]
AO World trumps expectations with first annual results as a listed company June 5, 2014 In its first set of full-year results as a listed company, AO World has reported that revenues jumped 40 per cent to £384.9m over the 12 months. Analysts Numis this morning called the results “solid”, reiterating its positive outlook and buy recommendation for shares. Earnings before interest, tax, depreciation and amortisation came in slightly above [...]
Bottom Line: Chop harder or prepare to face a descending axe June 4, 2014 HOW quickly a giant can start to resemble a dinosaur. Tesco’s likefor-like sales in the first quarter fell by a shocking 4 per cent if you exclude VAT, petrol and vouchers, its worst drop in years. Embattled chief executive Philip Clarke says he’s determined to cling to his position, but it looks less and less [...]
Home working is on the rise across the UK June 4, 2014 AN INCREASING number of British people are working from home, and on average they earn more per hour than the rest of the workforce, according to official statistics out yesterday. Around 4.2m people work from home in the UK, making up 13.9 per cent of all people in work during the first three months of the [...]
Inside Track: Tesco’s boss is out on a limb with a limp recovery plan June 4, 2014 PHILIP Clarke is beginning to sound like the corporate equivalent of Alastair Cook at the end of England’s disastrous Ashes defence. On yesterday’s conference call to discuss Tesco’s worst like-for-like sales performance in roughly 20 years, his insistence that his strategy is working sounded faintly ridiculous. “We are more competitive now than we have been [...]
Network Rail’s retail sales rocket June 4, 2014 Shops in Britain’s biggest railway stations enjoyed sales growth of 5.6 per cent in the first three months of the year, outstripping 0.5 per cent growth on the high street. Network Rail said footfall in retailers at King’s Cross is up 23.3 per cent on last year, while Cannon Street footfall is up more than [...]