Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Joules CEO goes as headwinds mount
There’s a trading update out from Joules Group LON:JOUL this morning, noting revenue growth of 20% for the 13 weeks from Feb 1st. However with consumer confidence deteriorating, headwinds are building and performance has fallen below management expectations in a number of areas. That’s likely to rattle investor sentiment, but adding to the matrix here is the news that CEO Nick Jones is to step down, too. Despite navigating a good line through the pandemic, under his stewardship the company’s share price has fallen to below the lows from the start of the pandemic. Whether that will be sufficient to salvage any confidence remains to be seen.
#2. Wetherspoon: traditional pubs lag growth in music venues and hotels
A Q3 trading update from the pub group JD Wetherspoon LON:JDW shows sales over the 13 weeks to April 24th were down 4% from pre-pandemic levels in 2019, with the trend improving on a weekly basis, although the tail end of that would be sitting across the Easter holiday weekend. Further detail in the note reveals that trading at the select number of pubs in the group with music was up 3.4% on the quarter whilst hotel room sales were up by 5%. The estate has also shrunk by 14 properties over the reporting period, asking the question that especially give the tighter labour market and rising cost base, has saturation point now been achieved for JDW’s core pub model?
#3. boohoo: full year numbers leave plenty to consider
Final results from fast fashion group boohoo LON:BOO are out today. Revenues are up 14% although margin erosion means gross profitability hasn’t quite kept pace, rising by a more modest 10%. Growth has remained strong in the UK markets – the company’s largest – and management still see scope for taking more market share in the years ahead. In the shorter term however there’s still a raft of external factors that are likely to weigh. This is a long note and there’s plenty to work through which could be useful if the market delivers an outsized response to these numbers.
