Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. next: profit forecast upgraded
Fashion retailer next LON:NXT has issued its trading statement to 30th December this morning. Full price sales were up 4.8% on the same period a year ago, well ahead of guidance and has resulted in the company upping full year profit forecasts by £20m. That paves the way for EPS to come in some 6.9% higher than the figure from a year ago, although the company adds that it remains cautious for the FY24 outlook, with expectations of pre-tax profits falling 7.6% over the year.
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#2. Greggs: strong sales growth despite strikes, weather
Greggs LON:GRG has its Q4 trading update out this morning, covering the period to 31st December. Despite adverse weather and strike action, like for like sales in the last three months of the year were up 18.2%, slightly ahead of the full year reading of 17.8%. The company cites both its value proposition and high demand for seasonal lines as boosting sales, whilst a growing number of stores are now open into the early evening, again something that is proving to be a demand driver. Full year numbers are expected to be in line with previous guidance although management note that material cost inflation will persist in the medium term.
#3. B&M: Q3 revenues advance, special dividend to be paid
B&M Value Retail LON:BME has released Q3 numbers today, covering the 13 weeks to Christmas Eve. Revenue growth was up 12.3% year on year and full year EBITDA forecasts are being upgraded beyond the current consensus estimate of £557m. The company is rewarding shareholders with a 20p special dividend, consistent with the capital allocation framework, with management noting that strong sales reflect the strategic appeal during the cost of living crisis.
