Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. ASOS revenues down 3% in late ‘22
Online fashion retailer ASOS LON:ASC has this morning issued a trading statement covering the final four months of 2022. Revenues are down 3%, broadly in line with expectations, and guidance for full year free cash remains unchanged. The company anticipates a first half loss for FY23 with inflation taking a toll but notes that in the second half, cost savings and tailwinds from falling freight costs will offset the downside here.
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#2. Tesco sales up 7.9% over Christmas
Tesco’s LON:TSCO Q3 and Christmas trading statement is out today, with the company declaring it has a 27.5% market share and is the only mainline grocer to have increased this metric from before COVID. Like for like sales over the 19 weeks to 7th January are up by 6.4%. Full year guidance has been reiterated and management note good momentum as the new calendar year gets underway.
#3. Persimmon forward sales struggle as economic storm clouds gather
Housebuilder Persimmon LON:PSN has issued a trading statement ahead of final results which are due for publication at the start of March. The company notes a range of factors such as rising interest rates and falling consumer confidence as weighing on forward sales, a number which is 36% lower than a year ago overall and down some 56% if only looking at private sales. The company is deploying its own initiatives to bolster demand such as 10 months mortgage free, although this will come at a cost and management add that they are committed to achieving quality returns rather than volume. The Persimmon share price has lost 60% since April 2021 but long term investors have had a stellar run.
