Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Optimistic mid term outlook from ASOS but costs remain stubborn
Interim results from ASOS [LON:ASC] show the fast fashion retailer with revenues down by 18%, adjusted gross margins falling by 260bps and adjusted pre-tax losses up by more than a third. Despite the tough headlines, management note that they are making progress with their turn around strategy, aged inventory is being sold down and there’s a focus on selling more at full price. Full year guidance has been confirmed and the FY25 outlook is even more optimistic but given a stubborn cost base, will the market buy this?
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#2. Just Eat UK sales surge as US flounders
Just Eat Takeaway [LON:JET] has its Q1 numbers out today with gross transaction value down 2% YoY and total order numbers some 6% lower. It’s certainly a mixed picture geographically with the UK outperforming whilst the US, Southern Europe and ANZ are notably struggling, Previous guidance level have however been reiterated so that may reassure the market, but do these numbers also start to become a barometer of consumer confidence?
#3. In-line performance from Entain, high levels of US engagement noted
And Q1 numbers are out from Entain [LON:ENT] with performance noted as being in line with expectations. Net Gaming Revenue globally was higher, but performance in the UK was hampered by regulatory moves. High levels of consumer engagement in the US have also been noted and management appear confident with the momentum that has been generated.
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