Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. ASOS profits return after capital allocation changes
Fast fashion retailer ASOS [LON:ASOS] has a trading update out covering the three months to 31st May. Changes to capital allocation mean that the company returned to profit for the period despite a 14% decline in revenues. Profit per order is up by 30% and gross margins improved by 350bps, most of that being attributable to shipping costs. The outlook for full year profitability remains unchanged.
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#2. Strong sales and an optimistic outlook at Fullers
Fullers LON:FSTA has results for the year to 1st April out today. Revenues are up by a third, with this translating into other metrics, too. The company reports strong trading for the first ten weeks of the new financial year and management note they have a clear pathway to future growth based on enhancing profitability from the underlying business.
#3. N Brown: softer revenues amidst weak consumer confidence
N Brown LON:BWNG has issued a trading update for the 13 weeks to 3rd June. Previously noted softer revenue trends are being sustained and are expected to persist in the coming months, although full year guidance remains unchanged.
