Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Costs down but inventory up – has boohoo turned a corner?
Final results are out from boohoo group LON:BOO today, with revenues down 17%, gross profits down 16% but margins up by 120bps. Operating costs are down significantly and inventory growth has ticked higher, although management are confident that the business has now turned a corner and will generate positive free cash flow in the year ahead.
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#2. Wetherspoon’s trading edges higher
Pub operator JD Wetherspoon LON:JDW has a trading update out for the 13 weeks to 28th April, with like for like sales up 5.2%. The estate is contracting slightly with a net reduction of 16 properties and a further 17 trading pubs currently on the market.
Comments from Tim Martin focus on the shifting habits of drinkers, highlighting the rising popularity of Guinness along with a series of other overly-specific brand mentions. The full year outlook is for profits to be at the top end of expectations.
#3. Steady performance from OSB
Specialist lending and savings group OSB LON:OSB has issued a trading update running from the start of the year. The company is on track to deliver against full year expectations. Management note that demand in buy to let and residential segments remains strong, whilst retail funds pricing remained stable. Net interest margin is also set to meet full year guidance.
