NEXT plc + J Sainsbury plc results: SBRY sold off, NXT bought as investors digest results from high-profile retailers
- Category: Share Price Drivers
- Published on Wednesday, 08 May 2013 07:31
- Written by Will Peters
NEXT plc (LON:NXT): Investors welcome news of profitable new outlets
NEXT plc (LON:NXT) shares have opened 1.3 pct higher on Wednesday morning; at 8:20 in London NXT is trading at 4463.
Investors have welcomed today's IMS which reports that brand sales ex VAT for the first 14 weeks were up 2.2 pct of which 1.5 pct came from the opening of profitable new space.
NEXT Plc remains cautious about the consumer environment and anticipates that the continuing decline in real earnings will depress discretionary spending for at least the next 18 months, if not longer.
NEXT added that it remains confident in its sales guidance for the full year of +1% to +4% and profit range of GBP615m to GBP665m.
Ahead of the results Sam Hart at stockbrokers Charles Stanley said:
"Market expectations are for dividend growth of 13% this year, predicated on solid sales growth, modest operating margin expansion, a flat interest charge and £250m of share buybacks. Attention today will focus on the first quarter sales performance and guidance for full year sales and profit before tax; the share price level suggests investors are confident that sales will be resilient despite the challenging consumer environment and intense competitive landscape."
J Sainsbury plc (LON:SBRY): Dividend lift not enough to tempt buyers
J Sainsbury plc (LON:SBRY) shares have sold off this morning; at 9:20 in London SBRY is seen 1.5 pct in the red at 390.4. It is worth noting that the stock has had a strong run leading into today's results release.
Sainsbury Final Results saw underlying PBT up 6.2% to GBP756m on total sales including VAT ex fuel ahead 4.3 pct and lfl sales including VAT, ex fuel up 1.8 pct.
The dividend is raised 3.7 pct to 16.7p a share and noted that it was well-positioned for future growth.
SBRY separately confirmed that it was taking full ownership of Sainsbury Bank by acquiring the outstanding 50% shareholding from Lloyds Banking Group for GBP248m.
According to J Sainsbury this will be funded from internal resources, adding that it had a well defined, 42 month transition plan in place to move onto a flexible, modern banking platform.
"The share price level suggests investors believe Sainsbury can deliver steady growth in earnings and dividends over the medium term despite the challenging operating environment," says Hart.
BRC reports falling retail sales
As SBRY and NXT report back to market we get some ominous news from the British Retail Consortium (BRC).
The BRC has said British retail sale values fell 2.2 percent from a year earlier on a like-for-like measure, which strips out changes in stores' floor space and is favoured by company analysts.
That was the steepest drop in a year and confounded analysts' forecasts for a 1.8 percent rise.
The total value of sales dipped 0.6 percent in April, breaking an almost year-long run of growth.
Newer news items:
- HSBC Holdings plc (LON:HSBA): Capital, cost and impairments story on track, but some revenue growth would be nice say Nomura - 08/05/2013 10:37
- Betfair Group Ltd: BET shares push higher; Nomura raise EBITDA forecasts on signs that cost-cutting efforts will boost bottom line - 08/05/2013 10:28
- Thomas Cook Group plc and TUI Travel plc: The upside for TCG and TT is tipped to prevail (provided these key support levels aren't broken) - 08/05/2013 10:22
- G4S plc and HSBC Holdings plc hit by downgrades: GFS shares still under pressure today while HSBA stock comes off recent highs - 08/05/2013 08:57
- Standard Chartered PLC + Tullow Oil plc results are in: STAN has clearly disappointed, TLW offers investors a safe and steady update - 08/05/2013 07:43
Older news items:
- Microsoft Corporation vs Apple Inc. and the Windows u-turn: MSFT's Windows 8 was a failure of timing, not of design - 07/05/2013 13:31
- G4S plc : GFS languishes 14pct in the red; a return to 'business as normal' is a long way off yet - 07/05/2013 13:18
- HSBC Holdings plc : For HSBA "there are inevitably potential clouds on the horizon" say Hargreaves Lansdowne - 07/05/2013 13:16
- Nokia Corporation (ADR) + Research In Motion Ltd: BBRY and NOK forecast to extend gains as technical setup remains constructive - 07/05/2013 10:41
- HSBC Holdings plc: Good moves by a low beta stock; will Standard Chartered Plc also deliver tomorrow? - 07/05/2013 10:27
Share Price Drivers - Latest News
Latest on The Economy News
- UK IT education is Failing British Students
- Pound euro exchange rate: GBP/EUR Solidifies Ground Above 1.18; BUT Beware EUR Comeback
- Pound sterling vs Australian and New Zealand dollars: GBP continues to be battered by NZD, temporary relief vs AUD
- Euro exchange rate today: Inflation data fails to provide the impetus for EUR to recover vs USD and GBP
- Pound euro exchange rate (GBP/EUR): Lloyds Bank Research forecast further gains for GBP as employment data improves
- Aus dollar trades with fresh menace; are we going to see further gains ahead?
- Euro forecasted to slump against Australian dollar by UniCredit Bank