Three things you need to know in the financial markets this morning from investment writer, Tony Cross
N Brown Group
A trading statement from the catalogue retailer N Brown was released this morning. Covering the 13 weeks to June 1st, the numbers are likely to be seen as uninspiring at best, although they are in line with expectations. The vast majority of transactions are now taking place online, with the majority of those taking place on mobile devices, too. Revenues are however almost 4% lower, reflecting the competitive pricing environment. Gross product margins are expected to be as much as 1% lower for the full year.
Meggitt has announced a long-term partnership with the engineering arm of Lufthansa this morning. The two companies will be working together in China to provide a comprehensive Maintenance, Repair and Overhaul (MRO) service to airline customers in the country. The scale of the deal isn’t outlined, but China is the world’s fastest growing market for aviation.
The retail sector in general may be struggling, but one company that can’t seem to stop impressing is Dunelm. They have issued a profit upgrade this morning, noting that the full year performance to June 29th will be ahead of board expectations. As a result, pre-tax profits are expected to be in the region of 25% higher than they were a year ago. To anyone who has asked if it’s possible to have too many cushions, perhaps these numbers suggest the answer is a definitive ‘no’.