Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Greggs sales up 17%, estate growth continues
Greggs LON:GRG have a trading update out covering the first 19 weeks of the year. Like for like sales growth is in excess of 17% although this number has been flattered by the impact of the COVID Omicron variant in the comparative. New store sales continue apace and although the company continues to see input cost inflation as a challenge, management note good forward cover on key commodities. The fact that disposable incomes are likely to remain under pressure is also seen as reinforcing the company’s value proposition.
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#2. Marston’s slips to loss
Pub operator Marston’s LON:MARS has issued results for the 26 weeks to 1st April. Total revenues are up by around 10% year on year, although that comes against a backdrop of presumably higher footfall and strong inflationary pressures. Spend per head is 9% higher whilst a 2% margin improvement has also been seen, although where profits were seen a year ago, headline losses are now being recorded. However with management noting that consumer confidence and the cost outlook are becoming more stable, they believe a brighter summer lies ahead.
#3. boohoo’s inventory reduction welcome, but company swings to loss
boohoo LON:BOO has full year results out today, covering the 12 months to 28th February. There are some pockets of strength being seen here including a 36% reduction in inventory, but metrics of greater concern are likely to include the 11% decline in revenues and 190bps drop in margins on a YoY basis. That has contributed to the company plunging to a £90m loss on a statutory basis. The outlook is for revenues to be flat to 5% lower for the current FY with declines weighted into the first half.
