Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Boohoo expects sales growth of 20%-25%
Interim results are out from Boohoo Group LON:BOO this morning, showing record sales of almost £1 billion for the six months to 31st August. Market share in the UK and US has doubled over the last two years and although profitability is down slightly, the company explains this as being against a very tough comparative. It does note however that returns rates are moving back to pre-pandemic levels, but that as H2 gets underway demand remains robust and the full year outlook is for sales growth of a further 20%-25%.
#2. Diageo margins expected to improve in line with sales volumes
There’s a short trading update out from Diageo LON:DGE ahead of the company’s AGM today. There’s not too much detail here, although the underlying tone is positive, with the company noting strong momentum in the on-trade as hospitality reopens, whilst travel markets continue to be disrupted. In terms of margins going forward, these are expected to improve in line with sales volumes and a focus on premium products, a mix that should help the company continue to deflect the price pressures from supply chain constraints.
#3. HSS earnings and revenues above management expectations
A half year report from HSS Hire Group LON:HSS for the 27 weeks to 3rd July has been published, showing revenues up 22%, a sharp decline in debt and a return to profitability. The company has now completed the implementation of its digitisation strategy and is reporting strong momentum for current trade, with earnings and revenues both above management expectations for the year to date.
