Yahoo Finance What to Watch: Boohoo sales soar, Bank of England search begins, and Primark profits surge
Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:
Boohoo sales soar
Online fashion retailer Boohoo (BOO.L) on Wednesday unveiled bumper profits as sales continue to surge at the fast growing firm.
Revenue grew by 48% to £856.9m ($1.1m) in the year to 28 February and pre-tax profit jumped by 38% to £59.9m. Turnover was up by 37% in the UK and 64% in international markets.
CEO John Lyttle, who took up the top job last month, said: “I am very excited to have joined the boohoo group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results.”
Bank of England governor search begins
Chancellor Philip Hammond is launching the search for the next Governor of the Bank of England to replace Mark Carney when he stands down next January, the Treasury has announced.
Mark Carney, who has been in the role since 1 July 2013, is set to step down on 31 January 2020.
Hammond said in a statement: “In today’s rapidly evolving economy the role of Governor is more important than ever.
“Finding a candidate with the right skills and experience to lead the Bank of England is vital for ensuring the continuing strength of our economy and for maintaining the UK’s position as a leading global financial centre.”
Primark profits surge
Primark notched up a surge in half-year profits as customers continue to flock to the budget retailer.
The firm, owned by Associated British Foods (ABF.L), saw adjusted operating profit jump 25% to £426m ($553m) in the six months to 2 March, while sales grew 4% to £3.6bn.
Like-for-like sales fell by 1.5% but profit margins were “much higher,” ABF said. In the UK, sales were up 2.3%, and comparable sales grew 0.6%.
The strong Primark performance helped ABF record a 2% rise in turnover to £7.5bn, although pre-tax profit was dragged down by a £79m exceptional charge linked to pensions and its bread-making arm. Pre-tax profit came in 15% lower at £515m in the period.
Wirecard lands $1bn from SoftBank
Under-fire German payments business Wirecard (WDI.DE) has attracted a €900m ($1bn) investment from Japanese telecoms giant SoftBank (9434.T).
Wirecard shares jumped 10% on Wednesday after the company announced the deal, which will see SoftBank gain a 5.6% stake in the company in five years through a convertible bond.
Shares in Wirecard, which focuses on online payments, have fallen by almost 40% since the end of 2018 after a series of negative articles in the Financial Times that suggested revenues at Wirecard’s Asian offices may have been artificially inflated.
Credit Suisse surprises with strong first quarter
Credit Suisse (CS) beat market forecasts with its first quarter earnings numbers, posting an 8% rise in net profit to SwFr 749m (£568m).
The Swiss bank also re-confirmed its full-year forecasts despite what CEO Tidjane Thiam described as a “a challenging quarter.”
Michael Hewson, chief market analyst at CMC Markets, said in an email: “Having spent the last three years restructuring the business to focus on areas like wealth management and paring back the higher risk trading business, this focus appears to be reaping dividends.
“The investment banking division is still underperforming, not too much of a surprise given the weakness seen in recent updates from its US peers, nonetheless there is no escaping the fact that having returned to annual profit last year the business appears to be heading in the right direction, even if trading conditions still remain challenging.”
Debenhams stores set to close
Debenhams new owners plan to close up to 20 of the department stores, according to Sky News.
Sky said Debenhams will launch a company voluntary arrangement (CVA) that will lead to the closure of 10% of stores immediately after this year's crucial Christmas trading period.
An announcement is expected on Thursday.
https://uk.finance.yahoo.com/video/european-markets-mixed-133644639.html
European markets
European stock markets were mixed after a choppy session for Asian markets.
Britain's FTSE 100 (^FTSE) was down by 0.4%, Germany's DAX (^GDAXI) was up by 0.1%, France's CAC 40 (^FCHI) was down by 0.1%, and the Euronext 100 (^N100) was down by 0.2%.
Despite stock markets hitting record highs in the US yesterday, Asian markets were mostly lower overnight. Japan's Nikkei 225 (^N225) was down by 0.2%, Hong Kong's Hang Seng index (^HSI) was down by 0.5%, and China's benchmark Shanghai Composite (000001.SS) was flat.
What to expect in the US
US stock futures were pointing to a lower open later today. S&P 500 futures (ES=F) were down by 0.1%, Dow Jones Industrial Average futures (YM=F) were flat, and Nasdaq futures (NQ=F) were down by 0.1%.
Reporting season continues in the US and Tesla (TSLA) and Boeing (BA) will be in focus later today.
Tesla (TSLA) will report after the close in the US on its first quarter and investors will be watching closely to see just how much first quarter car delivery numbers have missed the company’s targets by.
Boeing’s (BA) first quarter update will also be closely watched after the troubles the company has suffered with its 737 Max 8 planes. Investors will be looking for guidance as to the financial impact of these issues, which have caused plane crashes and forced airlines to ground jets around the world.
