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Inditex has published its FY21 figures which miss consensus expectations. The re-imposed COVID-related restrictions in some markets during the year-end season have significantly affected the group’s top-line momentum and profitability in Q4 21.
The group saw an encouraging start to the year with sales from 1 February to 13 March increased 33% yoy, which enhanced the group’s confidence to deliver a stable gross margin (56.6%-57.6%) for FY22 despite the uncertain trading environment.
Companies: Inditex (ITX:BME)Industria de Diseno Textil, S.A. (ITX:MCE)
The group has published its Q3 figures, with the top line in line with expectations and EBIT slightly below the consensus.
The group confirmed that the positive trend in both online and offline continues. Benefiting from the group’s flexible supply chain and industry-leading online-offline integration, Inditex sees no concern over the inventory position for the year-end trading period.
Inditex has maintained its strong momentum since this spring. Total sales in Q2 21(May-July) were 7% higher than the same period in 2019 despite some ongoing pandemic impacts in Asia, beating consensus expectations.
While the Swedish peer H&M released a trading performance for the three months to August that was below market expectations and still lower than the pre-pandemic level.
As we expected, the flexible supply chain and industry-leading online-offline integrated model have continued to
The group has released an encouraging start to the year, benefiting from its industry-leading online-offline integrated model.
With vaccinations ramping-up and the gradual easing of social restrictions, sales between 1 May and 6 June more than doubled compared to Q1 20 and exceed the pre-pandemic level (+5% vs. Q1 19), which leads to a strong recovery trajectory.
We believe the group’s flexible business model and the strengthening both online and offline development will make it best placed to
The second wave of the pandemic has more heavily impacted the group’s most relevant markets. Consequently, the weaker than expected year-end performance has led the group to finish the year with both the top line and EBIT below consensus and our expectations.
However, the group’s industry-leading flexibility of its business model (proximity sourcing and single inventory position) and accelerated online business expansion (32% of total sales) have led us to look beyond the pandemic.
Inditex has reported its Q3 20 figures, which showed an encouraging recovery until mid-October. Sales had already reached the same level as that in 2019 over 1-18 October. However, the new round of closures and restrictions in Europe will result in a challenging year-end trading environment for fashion retailers.
On top of the uncertainty related to the pandemic, the excellent management of inventory, advanced development in online-offline integration and strong cash generation will enable the
Companies: Industria de Diseno Textil, S.A.
Thanks to lower markdowns and tightened operating costs, the group has reported a better than expected H1 20 profit.
The progressively improved top-line momentum and strong resilience in profitability have led to better visibility for the second half of the year.
Although the group has reported an almost halved revenue generation and an operating loss in Q1 20/21 due to 87% of the group’s stores being closed in the period from 1 February-30 April, the group’s online business has been impressively accelerated by the anti-pandemic measures, notably, online sales have jumped 95% in April.
We confirm that the group’s advanced development in online and offline/online integration and an ample balance sheet will keep the group as the front-runner in the indust
The group has recorded another strong year, excluding the inventory provision for COVID-19.
The new FY20 is expected to be considerably affected by the COVID-19 pandemic, as 51% of the group’s stores have been closed temporarily in 39 countries as of today, and more countries will follow, shutting their commercial activities, such that more than 70% of the group’s sales will be temporarily frozen.
However, the ample balance sheet and strong cash generation could help the group confront the cu
Inditex has released quite healthy 9-months results.
The continued strong sales growth and a good improvement in the gross margin during the third quarter (c. 60% in Q3 19 vs. 56.8% in H1 19) have resulted in a bottom-line yoy growth of 12% to €2.7bn in 9M 19.
Inditex accelerated its growth in Q2 and closed H1 with 7% growth at constant rates. However, its gross margin was down in Q2 which raised concerns about the group’s pricing power. The operating margin was up 110bp to 15.9%.
Inditex has outperformed market expectations in profits, while its sales were slightly lower than consensus in Q1. Revenue was up 5% and EBITDA edged up 9% excluding the IFRS 16 impact. Q2 to 7 June sales surged by 9.5% at CER.
Inditex had no surprises in FY18. However, estimates for short-term growth of around 4-6% organically were disappointing. Also, the group has raised its dividend payout policy, which is rather a noise to please investors but, in the end, cash will end up in Ortega’s pocket.
Inditex has reported a slight deceleration in its organic growth to 3%. Sales were up 7% at CER and 2.6% reported. Operating margins were flat.
Inditex raised its sales by 8% at CER and 4% organically in H1. Margins were almost flat. In H2, sales should grow by 4-6% organically and the gross margin should increase by 50bp, according to management.
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• Financial performance: Group revenue of £1,982.8m is +13.6% YOY and +41.3% versus FY20, representing significant market share gains versus global apparel markets that remain below pre-pandemic levels (UK: +27.3% versus market -3%, US +3.8% versus market -9%). The UK delivered a standout performance +27.3% YOY with strong growth across both established and new brands. Demand in international markets has been impacted by extended delivery times due to constrained airfreight capacity, a headwind
Companies: boohoo group Plc
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Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketing agencies, Production studios and visual content prov
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H1 results confirm a strong recovery in store sales and a bounce back in profitability, benefitting from 26 weeks of uninterrupted trading. The Group is now debt free and has reinstated its dividend, with an interim distribution of 2.5p declared and scope for further special dividends and share buybacks.
Companies: Shoe Zone PLC
We publish our more detailed forecasts for Victoria following the FY trading update and completion of the carve-out and acquisition of the Rugs and UK Carpets division of Balta Group NV. FY2022E has been flagged with revenues in excess of £970m, underlying EBITDA in excess of £155m and underlying EBIT in excess of £100m. For FY2023E, management expect EBITDA in excess of £200m. Whilst demand into FY2023E has remained strong, the shares have weakened on thoughts of tightening consumer expenditure
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Zytronic’s interims confirm a continuing improvement in demand, driven by the Gaming and Vending sectors. This has driven a 24% increase in H1 revenue and a profitable outturn (PBT of £0.4m), on track for our full year forecast (SCMe: £1.0m) despite ongoing and well publicised supply chain challenges. Longer term recovery potential remains substantial and the Group is in excellent financial shape (net cash £7.5m post recent share buy-back programme).
Companies: Zytronic plc
The Character Group (Character) reported a 22% year-on-year (yoy) increase in sales and an improvement in profits in the first half to February 2022, despite the ongoing impact of Covid in China (where most of the group’s manufacturing is conducted) and supply chain issues. Investment in finished goods has significantly increased to ensure product availability in H2 but the Group still generated operating cash, ending the period with net cash of £21.5m after a £13.6m share buyback.
Companies: Character Group plc
Good H1 figures and the turnaround plan on track make the risk/reward tilt upwards given the recent underperformance against BAT. However, we continue to believe that IMB’s combustible focus strategy is not the right one and we see much more positive catalysts when looking at BAT.
Companies: Imperial Brands PLC
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EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). ASICs are integrated circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware thereby making products smaller, faster, lower power and more secure and can provid
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e client of Hybridan LLP
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BSF Enterprise. Following the successful reverse takeover of 3D Bio-Tissues Limited, a tissue engineering business based in Newcastle, UK, the Company announces admission of the enlarged group to the standard segment of the Official List and initiation of trading on the Main Market under the ticker ' BSFA '. The Admission follows a placing which raised £1.75m at a placing price of 7.37 pence per share.
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Accrol has delivered a robust trading update despite clear inflationary pressures on the business during the period. As a result, we are increasing our FY23 and FY24 revenue forecasts to reflect higher levels of activity and product inflation. Our headline earnings numbers remain unchanged following this update, albeit with growing confidence in FY23. We believe the shares look undervalued in what remains a strategically important player in the industry.
Companies: Accrol Group Holdings plc
A reassuring trading update confirms that SuperGroup continues to deliver attractive top-line growth. Admittedly, the superior wholesale performance means (as previously flagged by the company) that there is likely to be some gross margin erosion, but the focus on operational leverage should still ensure a modest improvement in operating margins going forward. Management’s commercial and pragmatic approach to expansion should mean continued success as the brand rolls out beyond its core markets
Companies: Superdry PLC
FY21A Results were well flagged in November’s trading update. Today’s announcement reveals the Group is now debt free and reiterates its intention to return to the dividend list in the current period. Shoe Zone has a clear and well-defined plan to transform its store portfolio and grow its digital offer through its shoehub platform, which we believe will deliver a well-balanced retail model that can win market share and drive profitable growth.
RC365 Holding has joined the Main Market (Standard). Founded in Hong Kong in 2013, the Group is a fintech solutions service provider in China and Hong Kong, and is looking to expand its payment gateway services into Europe and the UK. In connection with Admission, the Company successfully raised approx. £2m for the Group at a price of 6.2p per ordinary share. At the Issue Price, the Company's market capitalisation will be approx. £6.7m.
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