Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Tesco’s – Highest UK market share in 4 years
It’s another busy day for retail updates so we’re kicking off with Tesco LON:TSCO, who have this morning published their Q3 trading statement covering the 19 weeks to 8th January. The company notes it achieved its highest UK market share in four years and despite rising food price inflation was able to strengthen its value proposition. Ireland was the only weak spot although as the company notes, this came against incredibly tough comparatives after such strong sales for Christmas 2020.
#2. ASOS set to move to main board of LSE
Fast fashion group ASOS LON:ASC issued a trading statement up to 31st December this morning with group sales up 5% in the final four months of the year. Supply chain constrains and limited demand as Christmas parties were cancelled both took a toll here, but the UK market still performed better than expected and company guidance for the full year remains unchanged. The company has also announced its intention to move over to the main board of the London Stock Exchange, which should in turn lead to the company’s inclusion in the FTSE-250.
#3. Sales recovering for the Card Factory but still below pre-pandemic levels
Rounding off with Card Factory LON:CARD who published an update for the eleven month period to 31st December. Trading was ahead of board expectations and since stores reopened in April, sales have been trending towards pre-pandemic levels and although still remain some way short of that target, sit very close to the 2018 number. Management have also expressed confidence that sales growth can be maintained from here, with a revenue target of £600m being eyed for FY26
