Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Plenty to pick from this morning so apologies if I don’t have your favourite companies in here!
#1. Superdry footfall remains subdued
Superdry [LON:SDRY] has published a pre-close trading update covering the 26 weeks to 23rd October, along with an 8 week assessment, too. It doesn’t make great reding with little sign of the pent up demand story emerging – group revenues are 2.4% lower than a year ago and 25% down on the pre-pandemic level. The company notes that footfall remains subdued and whilst store revenues are up 21% on a year ago, they’re still almost 35% below pre-pandemic levels. Margins are however improving and the company notes no supply chain issues.
#2. J Sainsbury sales up 0.8% on last year and 9.1% on pre-pandemic comparatives
Half year numbers from J Sainsbury [LON:SBRY] are out today, noting sales up 0.8% on last year and 9.1% on pre-pandemic comparatives. This has been reflected in the profitability figures, which have been further augmented by lower restructuring costs. Whilst some consumers are returning to pre-pandemic shopping habits, the company notes that online sales remain unchanged and an interim dividend of 3.2p per share – the same as last year – is being proposed. The 160bps decline in return on capital employed may however take the shine off.
#3. Tekcapital portfolio company lands distribution deal
A note from Tekcapital [LON:TEK] after a fundraise knocked the share price a little. A wholly owned portfolio company – Lucyd – has been approved to offer its eyewear on BestBuy.com. That obviously has the potential to expand the distribution of the company’s products and could offer some positive sentiment following yesterday’s mark-down.