Wednesday, 26 April: Boohoo’s staggering rise continued today after they released their final results, showing pre-tax profit nearly doubled in the year to the end of February 2017. The online fashion retailer continues to school traditional high street retailers with a lesson on marketing via social media and more current methods which related well with the 18 – 24 year old target market. Sales jumped by 51% led by overseas growth, despite modest UK growth of 33%, sales in the US grew 140% alongside European growth of 50%. Stateside their expansion has been aided from their acquisition of US fashion site Nasty Gal. Despite the news and no allusion to future hurdles, shares headed lower during the day and closed 2.24% lower. Investors are likely unfazed, shares are over 250% higher YTD.
Coca Cola will cut jobs after falling demand for their soft drinks. The key markets of North America and Europe have seen people turn away from their sugary drinks, with this trend broadly displayed across other beverage firms such as PepsiCo. The firm expects FY profits to fall between 1% and 3% and they’ve announced they aim to make $800m in annualised savings. Investors were seemingly a little pleased with the plans as Coca-Cola shares on the LSE ended the day 0.23% higher.
Jockey Club revenue has jumped to a record high, up 4.5% to £191.5m. Their contribution prize money also hit a record of £20.6m. They also welcome the reformed bookmakers’ levy system, introduced this week, which now requires bookmakers to pay 10% of gross profits from bets made by British customers on British horseracing above the first £500k they make. This includes all platforms, on-course, off-course and firms based offshore. They recorded their second largest cumulative attendance at 1.92m people over their 333 race days, despite 8 fixtures being cancelled due to adverse weather. Since their first year operating solely as a commercial Group in 2008 they have grown revenues by 90%, looking forward they aim to add a further £250m to racing prize money over the next 10 years (+52% over the corresponding period).
Defence firm Lockheed Martin saw improved sales offset by unexpected losses from its international business, which pulled quarter earnings back by 15% to $763m. Profit guidance for the year has been lowered and shares have fallen during the session. The struggles stem from the blighted F-35 fighter jet program, recently in Donald Trump’s firing line.
Moving on with the theme of US presidents, your favourite ex-POTUS Barack Obama has made a much anticipated return to the tabloids, well apart from his recent trip with Richard Branson on a yacht. Anyhow, he’s getting a little stick after revealing he is to deliver a speech to Wall Street bankers. Maybe deemed somewhat hypocritical, after all he did deliver huge criticisms to Wall Street following the 2008 global financial crisis. But for the hours work he is reportedly set to pocket $400,000. Not bad, and yes he spoke about the income gap and fat cats, nut $400,000 is $400,000. We’d all most likely do the same and he’s got to fund Jet Ski trips on private islands somehow. Oh and golf clubs don’t come cheap. Still, Barry we miss you and if it’s going to cost us $400k to bring you back, well that’s a price we’re clearly willing to pay.
On the day the FTSE closed 0.18% higher, after a mixed day of trading without any major movements. European shares broadly ticked up to hold onto the gains made on Monday. Sterling stayed above the $1.28 vs USD and sits just above the 1.18 mark vs the EUR. Oil as we write sits at $52.08 p/bbl.