- Tesco and Marks & Spencer slump to the foot of the FTSE 100 on retail ‘Super Thursday’ as festive sales miss City expectations host of shops including John Lewis, Boohoo, Card Factory and Game Digital report mixed bag of results
- M&S shares slip 3.3pc after suffering declines both in its clothing and food departments as inflation-squeezed consumers tightened their belts
- Tesco’s sales growth misses analyst estimates its share cost tumbles 3pc
- Bond market jitters suppress stocks but miners lift the FTSE 100 into positive territory
Tesco extends slide on FTSE 100 despite record Christmas results
M&S and Tesco’s slide around the FTSE 100 is quickening and housebuilding shares will also be coming pressurized after FTSE 100 company Barratt Developments grew to become the most recent within the sector to report slowing sales.
Sales at Tesco may have hit an archive high at Christmas but is missing the City’s high expectations a blot on Tesco leader Dave Lewis’ impressive copybook?
Accendo Markets analyst Henry Croft contended that his technique is “yielding results” however that weak general merchandise sales pulled lower strength in the food division.
The figures reveal that Tesco continues to be crucially holding its ground against fierce competition from the kind of Aldi and Lidl, however, commented Martin Lane, managing editor of cash.co.united kingdom.
A 4.4pc share price slump for Tesco feels pretty harsh on the rear of record results.
John Lewis warns of ‘volatile’ economy despite record Black Friday sales
A record Black Friday helped John Lewis publish strong development in the increase to Christmas however the worker-owned store cautioned intense competition along with a “volatile” economy would weigh on its full-year results.
Sales at John Lewis Partnership, including Waitrose, rose 2.5pc close to £2bn within the six days to December 30, boosted by 3.6pc growth at its mall chain.
Black Friday was the greatest day’s sales in John Lewis’s history, with revenues that week up 7.2pc year-on-year. Electricals rose 5pc over the period, and garments improved by an identical amount, but homeware dipped .3pc.
Read Jack Torrance’s full report here
Supermarket premium ranges snatch sales from M&S
Are Debenhams and Marks and Spencer’s sales woe only a reflection of squeezed consumers looking for cheaper deals?
John Lewis’ Black Friday-boosted sales figures today shows that there is a way to success for greater finish stores.
Hargreaves Lansdown analyst Laith Khalaf argues the sales slump at M&S is principally because of “wider economic trends” which the strong performance of supermarkets’ premium ranges shows that shoppers are spending money at the kind of Morrisons and Sainsbury’s instead of at M&S.
M&S sales fall as shoppers on ‘tighter budgets’ look elsewhere
Marks & Spencer’s revenues fell within the several weeks prior to Christmas as consumers with “tighter budgets” shopped elsewhere.
Sales at United kingdom stores open several year dived 1.4pc within the 13 days to December 30, with what leader Steve Rowe referred to as a “mixed quarter”. Shares within the store were lower 2.93pc at the begining of trade at 314.30p.
High street shops stalwart’s lengthy-suffering clothing and residential division endured a couple.8pc like-for-like decline, so it attributed to October’s abnormally the sunshine.
Read Ashley Lance armstrong and Jack Torrance’s full report here
Boohoo lifts sales guidance as revenue doubles
Online fast fashion store Boohoo has upped its sales guidance for the next year revenues bending.
The organization, that also owns the PrettyLittleThing and Nasty Woman brands, stated it now expects revenue development of 90pc within the financial year post sales increased 100pc to £228m within the four several weeks to December.
Mahmud Kamani and Carol Kane, joint executives, stated: “The Black Friday period was our most effective ever so we traded well through the period. Boohoo has ongoing to do well, delivering strong revenue growth on more and more challenging comparatives this past year.”
Report by Jack Torrance
Agenda: Tesco and M&S tumble on retail ‘Super Thursday’ as festive sales suffer
The UK’s greatest supermarket Tesco and street stalwart Marks & Spencer have tumbled to the foot of the FTSE 100 on retail ‘Super Thursday’ after their festive sales missed City estimates.
While John Lewis and fast fashion e-tailer Boohoo beat expectations, M&S joins mall Debenhams and baby store Mothercare among the list of retailers seeing their sales shrink as consumer tighten their belts while Tesco’s sales growth arrived below analyst expectations.
Elsewhere, investor jitters around the bond market are keeping stocks around the back feet again today.
The sharp increase in bond yields was sparked through the Bank of Japan trimming its government bond purchases, igniting concerns the top central banks will taper their quantitative easing programmes faster compared to financial markets are expecting. The sudden rise was exacerbated yesterday by reports that China – among the largest buyers people Treasuries – are recommending slowing US 10-year Treasury purchases.
After stocks dipped in Asia and also the US overnight, the FTSE 100 is again the only blue-nick index increasing in Europe but government bond yields are starting to withdraw.
Buying and selling statement: Boohoo.com, Fenner, Barratt Developments, Hays, M&S, moss Bros, Premier Oil, Spire, Tesco, Jupiter Fund Management, Rathbones, Ultra Electronics
AGM: Fenner, Debenhams, Domino’s Pizza Group
Financial aspects: BoE credit conditions survey, PPI (US), Industrial production (EU), ECB meeting minutes (EU)