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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.
Companies: Inditex (ITX:BME)Industria de Diseno Textil, S.A. (ITX:MCE)
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.
Inditex performed well in Q1. Sales climbed by 7% at CER and the gross margin increased by 68bp.
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H1'22 Interim Results: Caution Ahead!
Companies: Frontier Developments 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.
Companies: Shoe Zone PLC
Unilever’s bid for GSK’s Consumer HealthCare division is causing a stir, as it seems totally unreasonable. The group was asked to move on portfolio rotation, but definitely not to be so ambitious at the risk of penalising shareholders.
Companies: Unilever PLC
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.
SuperSeed Capital Limited
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Accrol has released a trading update highlighting further inflationary cost pressures guiding FY22E adjusted EBITDA to be significantly below FY21A.
Companies: Accrol Group Holdings plc
Companies: MJ Gleeson PLC
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Ridgecrest (Formerly Nakama Group) has left AIM.
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Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company's proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems,
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Companies: Frasers Group PLC
Trackwise Designs has developed a proprietary, proven technology, IHT, for manufacturing extremely long, flexible circuits that can replace conventional wiring harnesses. This disruptive technology is applicable to many industries including electric vehicles (EVs), medical devices and aerospace. Since listing in July 2018, Trackwise has invested substantially in capacity, acquiring Stevenage Circuits in March 2020 and a new site in Stonehouse in April 2021. The new site is scheduled to commence
Companies: Trackwise Designs Plc
Where next for markets in 2022? In our view, if COVID is not on the way out, we are just going to have to live with it now and it will have less and less impact on economic forecasts going forward. Instead, the bigger issues for investors to deal with in 2022 are cost inflation and staff shortages for business (which are already hitting earnings momentum), energy cost inflation and higher taxes hitting the consumer wallet, and markets that start from very elevated valuation multiples compared wi
Companies: GML HAT IOG LOK MTC QTX SOM SCE SNG TRCS TRMR
Games Workshop Group’s (GAW’s) H122 results reflect lower year-on-year revenue growth after a very strong FY21, as expected, with positive comments on new launches, specifically the third edition of Age of Sigmar. Ongoing internal investment to support future growth and new external cost pressures led to a reduction in operating profit pre-royalties, which was more than offset by the notable increase in royalty income. As previously flagged, the shape of our FY22 forecasts has changed to reflect
Companies: Games Workshop Group PLC
Sanderson Design Group is a leading luxury interior furnishings company, specialising in fabrics, wallpaper and paints, which are sold around the globe. Since the change in leadership in 2019, the group has been following a clearly articulated strategic framework with detailed milestones up to FY24, including its sustainability programme, Live Beautiful. This is with a view to driving sales (and profitability) to close the gap between the undoubted brand equity within its portfolio and the relat
Companies: Sanderson Design Group PLC
We continue to believe that IMB is not necessarily a short-term strategic investment given the fact that the company is entering the second year of its “strengthening phase” with further investments which should weigh on margins, so no major improvement in the shareholder return.
Companies: Imperial Brands PLC