[ad_1]
uperdry and Dr Martens today revealed trading setbacks in a session when the FTSE 100 index is expected to maintain recent progress.
Fashion retailer Superdry said sales in February and March had not met expectations, blaming the cost of living crisis and impact of poor weather. It has withdrawn previous guidance that it will break even in the year to April.
Meanwhile, Dr Martens continues to count the cost of operational issues at its Los Angeles distribution centre as it issued new earnings guidance for a figure of around £245 million.
The FTSE 100 looks set to close out the week with a sixth consecutive day of gains, after strong trading on Wall Street yesterday.
Live updates
Hays reveals drop in recruitment of permanent staff amid faltering ‘client and candidate confidence’
Employment consultant Hays revealed today that employers are making more use of temporary staff amid a drop in “client and candidate confidence” which means less recruitment of permanent workers.
In the three months to the end of March, there was a drop of 2% in permanent placements , which it said “reduced through the quarter”. Temporary placements rose by 11%.
The rise in temporary jobs, the FTSE 250 company’s biggest market, helped group fees hit a record, while a lack of skilled workers stoked wage inflation in the period.
Alistair Cox, chief executive, said: “employers shifted their hiring patterns towards more flexible labour” amid “increased macroeconomic uncertainties”.
He added: “Our key markets continue to be characterised by acute skill shortages and wage inflation, and we are benefiting from our early management actions to increase fee margins in skill-short markets.”
US rates-sensitive stocks rally, FTSE 100 seen higher
Wall Street closed higher last night after weaker-than-expected figures on producer price inflation and from the labour market boosted hopes that Federal Reserve policymakers may yet pause interest rate hikes at their meeting next month.
The S&P 500 rose 1.3% and the rate-sensitive Nasdaq Composite lifted 2% in its best session for nearly a month.
Volatility continues to ease as the VIX index closed at its lowest level since January 2022, which Deutsche Bank strategists said was particularly striking given how tumultuous markets were only a month ago.
However, the start of the first quarter earnings season has the potential to shake this confidence, with several financial stocks reporting today including JPMorgan Chase, Citigroup, Wells Fargo and BlackRock.
The FTSE 100 index rose yesterday and is expected by CMC Markets to add another 16 points at 7859 this morning as European markets maintain their momentum.
YouGov poaches Meta’s European head for CEO role
YouGov has poached Meta’s European head Steve Hatch as its new CEO.
Hatch was appointed as Facebook’s first Regional Director for the UK in 2014, and in 2016 became Meta’s Vice President for Northern Europe.
Hatch will join the polling company at the beginning of August, replacing co-foudner Stephan Shakespeare who will assume the role of Non-Executive Chair.
Steve Hatch, Meta’s vice president for Northern Europe (Kirsty O’Connor/PA)
/ PA ArchiveSuperdry sales hit by challenging conditions
Superdry has withdrawn its breakeven guidance for its April financial year after retail sales missed expectations in February and March.
Founder and chief executive Julian Dunkerton said “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging.”
The performance in wholesale continues to be challenging, leading to a new forecast that overall revenues will rise from last year’s £609 million to between £615 million and £635 million.
Retail sales continue to show good like-for-like growth, but at a slower rate than anticipated due in part to the cost-of-living crisis and poor weather resulting in less demand for the new spring-summer collection.
Superdry said the trading uncertainty and actions associated with the reorganisation of its wholesale division made it challenging to give guidance on full year profit.
It said: “Therefore, the board has taken the decision to withdraw the previously issued guidance of broadly breakeven for our FY23 adjusted profit before tax.”
Dr Martens warns on profits after warehouse issues
Dr. Martens issued a second profit warning in three months after “operational issues” at one of its distribution centres led to higher costs.
The company known for its boots warned in January that problems at its Los Angeles distribution centre limited its ability to meet demand.
Now it said that these issues are solved, but the costs of restoring business as usual were higher than expected. This, combined with lower-than-expected Q4 sales, mean the company now expects a profit of £245 million, having previously expected it to fall between £250 million pounds and £260 million.
AO World lifts guidance for the third time
AO World has lifted its profits guidance once again to the top end of its previous expectations of £37.5-40 million, well up on the £20-30 million it guided late last year.
The online retailer said risks of macroeconomic uncertainty did not materialise to the extent it had previously feared.
John Roberts, CEO and Founder, said: “We are encouraged by the work undertaken to pivot the business during the financial year 2023. AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance
888 looks to sell assets after taking £30 million annual hit from money laundering scandal
William Hill owner 888 is looking to sell off parts of its business, as the money laundering scandal that brought down former CEO Itai Pazner will continue to cost it up to £30 million a year going forward.
The betting giant announced the suspension of its Middle Eastern operations in January, as it launched an investigation into the quality of money-laundering checks it performed on Middle Eastern high-rollers.
At the time, it said the suspension would cost it roughly 3% of revenue.
Now, it has revealed that the investigation is complete, and it expects the hit going forward to be between £25 million and £30 million. The betting firm will also look to sell certain ‘non-core’ businesses, having struggled with debt after heavy borrowing to fund the acquisition of William Hill, which closed during the year.
The company also announced its 2022 financial results today, with profit up 82% mostly due to the acquisition.
Yesterday’s top stories
Good morning. Here are some of yesterday’s top stories:
[ad_2]
Source link