Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s a Q1 trading statement out from J Sainsbury [LON:SBRY] this morning, showing sales for the 16 weeks to June 26th are up 1.6% year on year, and an impressive 10.3% on a two year basis. Clothing sales have been exceptionally strong, rising by more than 50% and given this straddles the period of non-essential retail reopening, this is likely to be seen as significant. Conversely, Argos sales were down year-on-year, given the tough comparatives, but a theme of general outperformance against the wider market may be sufficient to impress investors.
Half year numbers from Ocado Group [LON:OCDO] have been published too, showing 20% growth in retail revenues, group EBITDA more than tripling to £60.1m and a continued roll out of customer fulfilment centres. Despite all that, profitability remains elusive, although losses for the period were just £23m, a notable improvement on the £40m recorded a year ago. Separately the company has also reported this morning that it has signed a deal with Alcampo of Spain to develop their online business using the Ocado Smart Platform.
Full year numbers from online estate agents Purplebricks Group [LON:PURP] are out today, showing revenues up 13% and profits up 12%, numbers that whilst sounding impressive are essentially in line with underlying house price growth. Dig a bit deeper and the company has actually lost market share, but is pushing ahead with a new pricing structure that it believes will fare well as volumes normalise into the new year. Expectations are that annual revenue growth of more than 20% can be achieved in the medium term, something that certainly has the potential to cheer investors.
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