Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Sainsburys builds market share
There’s a trading statement out from J Sainsbury LON:SBRY this morning covering the 16 week period to June 22nd. The company notes an improvement in grocery sales but clothing and merchandise declined, whilst Argos sales were reported struggling against strong comparatives. The company also notes that Kantar awarded it the biggest market share gains of any grocer during the quarter with consistent net switching gains as more customers select the store for their main shop.
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#2. Profit warning from down-at-heel Shoe Zone
There’s a short trading update out from Shoe Zone LON:SHOE noting that the company continues to experience cost pressures due to higher shipping costs. Poor weather has also been weighing on sales over the last quarter and as such profit forecasts are being dialled back to not less than £10m for the full year, a figure which originally stood at £15.2m and was dialled back to £13.8m in the interim results.
#3. Is Wizz Air approaching market saturation?
June traffic figures are out from Wizz Air LON:WIZZ this morning showing that despite a modest uptick in capacity, passenger numbers weren’t keeping pace. There’s no explanation here although the obvious points would be the combined effects of market saturation as travel levels return to those seen before the pandemic, along with the broader cost of living squeeze. The numbers for the first quarter may be slightly brighter but still show capacity growing faster than passenger numbers.
