Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Next Q1 sales better than expected
A very busy day for results and corporate updates, so starting with Next LON:NXT their trading statement for the 13 weeks to 29th April shows full price sales (fps) down 0.7%, slightly ahead of expectations. That however isn’t sufficient to give management confidence to upgrade the performance it envisages for the full year, which remains at a 1.5% decline in fps, even though a stronger outcome was expected in H2.
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#2. Domino’s Pizza value proposition proving to be a winner
Domino’s Pizza Group LON:DOM has a trading statement out, showing record Q1 sales, a strong start to Q2 and the start of a £20m share buyback round. The strongest growth is being seen in collection orders, although the slide in deliveries is now starting to abate. The chain reports continued growth in UK market share, now at 7.8%. Household budgets may remain under pressure but the value proposition here appears to be a popular one.
#3. Shell: another $4bn handed to shareholders
Oil giant Shell LON:SHEL has published Q1 numbers today which will again attract a weight of political attention. Adjusted EBITDA of $21.4 billion is paving the way for a further $4bn of share buybacks to be completed by the end of the quarter, taking total returns to shareholders for H1 to some $12 billion. Oil prices may now be cooling, but the combination of bumper payouts to investors as consumers sit saddled with energy debts is inevitably going to draw fire.
