Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Next full year profits upgraded marginally
There’s a Q3 trading statement out from Next [LON:NXT] this morning. Full price sales are up 4% despite underlying volatility through the period as a result of changing weather conditions. As a result of this the company is upgrading full year projections and now expects to see YoY growth in full price sales up 3.1%, some 50 bps higher than previously forecast. Group profit is now expected to come in at £885m.
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#2. ASOS group revenues down as commercial model shifts
Results for the full year to 3rd September are out from ASOS [LON:ASC] today. These show adjusted group revenues down by 11% and despite an improvement in gross margins of 60 bps, pre-tax losses have ballooned to almost £300m. The company has shifted its commercial model, enabling it to work on far lower stock levels and with faster response times, moves that will improve core profitability.
#3. Aston Martin volumes edge higher but losses persist
Q3 numbers from Aston Martin Lagonda [LON:AML] show wholesale volumes up 4% and revenues up 15% against the comparative period in FY22. Margins are improving as well, but the business remains loss making, with a pre-tax deficit for the quarter of £117m, admittedly around half the 2022 figure. Full year forecasts include interest costs of £120m – a comprehensive refinancing exercise is expected in H1 ’24 – and management are still targeting EBITDA of £500m by 24/25.
