Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Superdry
There’s a trading update from Superdry out this morning, and although probably falling short of counting as an outright profit warning, it comes with a cautionary tone. Demand for Autumn/Winter wear has been significantly depressed by the warm weather of late, whilst currency hedging processes have been less effective this year than the company has seen previously.
The company has downgraded expectations over an array of metrics and the two factors together are expected to lop around £18 million off full year profits. That said, sales on colder days in September showed a notable increase – investors will presumably be looking at the long term weather forecast with increased interest.
Purple Bricks
Purple Bricks notes this morning that it has entered into a joint venture in Germany with media owners Axel Springer, whilst the company has also posted a trading update which shows performance in line with guidance. The company has in excess of a 70% share of the UK online market and management see the move into Germany – Europe’s second largest residential real estate market – as presenting some great potential for the business.
Shoe Zone
Shoe Zone, the UK’s largest value footwear retailer, has posted a full year trading update this morning, with a strong second half to the year expected to see profits coming in ahead of expectations. One of the noted drivers of success here is that foreign exchange hedging has been better than forecast, whilst stronger revenues and margin performance have also bolstered performance.
