Yahoo Finance Trending tickers: Boohoo l Greggs l Tesla l Nvidia
Boohoo (BOO.L)
First-half revenue at online fast-fashion retailer Boohoo declined 17% to £729.1m ($881.6m), sending its shares down nearly 9% on Tuesday.
Margins also fell by 90 basis points with the group slumping to a pre-tax loss of £9.1m, from last year's £6.2m profit.
Meanwhile, full-year revenues are now expected to fall 12% to 17%, the clothing retailer said.
UK sales slid 19% and international sales fell 15%, although Boohoo said revenue in core brands declined just 10%, consistent with prior guidance.
The firm noted it had targeted more profitable sales in its labels which resulted in more significant revenue declines.
Read more: LIVE: FTSE muted despite UK food prices falling for first time in two years
However, it also identified more than £125m of annualised cost savings across cost of goods, supply chain and overheads, to be delivered across 2024 and 2025.
Shares in Boohoo have fallen 35% year-on-year.
Richard Hunter, head of markets at Interactive Investor, said that the group’s business model allows flexibility and value to an ever-changing youth fashion market, while the acquisition of names such as Debenhams and Coast provide potential appeal across new audiences.
“Its determination to expand and automate is also in evidence with a new facility in Sheffield and, in particular, the launch of a new distribution centre in the US,” he said.
Greggs (GRG.L)
Bakery chain Greggs reported that total sales for the 13 weeks to 30 September were up 20.8% and said its full-year performance is expected to be in line with forecasts.
The company said it had seen some easing in cost inflation and company-managed shop like-for-like sales were up 14.2%.
Greggs is set to roll out its delivery service with Uber Eats (UBER), following a successful trial with Just Eat (JET.L).
It expects to have around 500 shops live with Uber Eats by the end of October 2023, with further expansion to come in 2024.
Meanwhile, the company plans to add up to 145 new shops in 2023.
“The cost of raw materials, energy and wages have risen rapidly over the last year, but encouragingly these cost pressures are now beginning to ease. This isn't just good news for profit margins but should also help underpin consumer demand by reducing the need for price increases,” Charlie Huggins, manager of the quality shares portfolio at Wealth Club, said.
Tesla (TSLA)
Third quarter delivery figures missed the mark at Tesla as scheduled downtime at some of its plants shifted future production further into the fourth quarter.
Tesla said it delivered 435,059 vehicles globally in the third quarter, of which approximately 419,000 were Model Y and Model 3 vehicles and around 16,000 were higher-priced Model X and Model S cars.
Wall Street consensus estimates had delivery expectations of 456,722 for the quarter.
“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged,” the company said in a statement.
Read more: Stocks that are trending today
Danni Hewson, AJ Bell head of financial analysis, said: “Investors seemed happy enough with the company’s current strategy of cutting prices to stoke demand, whilst preparing new models to tempt buyers.
“Tesla’s fighting off competition from both ends of the market – those legacy players late to the EV game and relatively new kids on the block like Rivian (RIVN).”
Nvidia (NVDA)
Shares in US software company Nvidia rose nearly 3% at market close on Monday with further gains expected when Wall Street opens on Tuesday.
It comes as analysts at Goldman Sachs added the company to its ‘Conviction List' of top stock picks, an upgrade from its previous 'Buy' rating, while maintaining their $605 per share target price on the stock.
"Look for Nvidia to maintain its statues as the accelerated computing industry standard for the foreseeable futures given its competitive moat and the urgency with which customers are developing and deploying increasingly complex AI models," Goldman Sachs said.
The company, which makes graphics processing units (GPUs) is now valued at over $1tn. Its shares are up nearly 200% so far this year.
Nvidia is among the stocks that have gained from the Artificial Intelligence (AI) excitement as a key player in the sector.
Watch: Nvidia & Apple: What the charts show about the tech giants
Download the Yahoo Finance app, available for Apple and Android.
