Three things you need to know in the financial markets this morning from investment writer, Tony Cross
There’s a note out from Stagecoach that is likely to cause some consternation for investors this morning. The company has been disqualified from three rail franchises it was bidding for as a result of submitting non-compliant proposals. A failure to adequately look at pension risk is cited as the reason, but given Stagecoach’s long history of working in this space, there’s certainly a tone of surprise in the statement.
ASOS has reported interim results this morning, with revenues up 14% but the Chief Executive stating that the company is capable of a lot more. Full year guidance has however been left unchanged and although investors may be happy to swallow the relatively small drop in margins, it’s whether they are happy to pass the dip in profitability off to the transition phase the company is now coming out of that will likely count the most.
The nation’s obsession with soft furnishings shows no sign of relenting, at least not if you take a look at Dunelm’s latest quarterly results which are published today. Sales are up 12.5%, but online is the biggest winner, growing by over 30%. Gross margins are creeping higher too and the company seems to be investing smartly to help it address the challenges faced by the retail sector in today’s environment.