London's FTSE 100 index opened 0.4% lower, while the FTSE 250 rose 0.4%. The dollar weakened and the pound strengthened after comments from Federal Reserve Governor Waller raised expectations of potential interest rate cuts. Car and cycle retail and repair specialist Halfords reported lower profit forecasts for 2024. Deutsche Bank downgraded Aviva, while Direct Line, Legal & General, and M&G were upgraded. The Competition and Markets Authority (CMA) will launch a review in January 2024 to investigate the impact of loyalty scheme pricing by supermarkets. Halfords reported a revenue growth of 13.9% in the first half of the year. Spread betting companies predict a lower opening for London's lead index. US Gold Corp CEO George Bee discussed Resourcing Tomorrow 2023 with Proactive. The FTSE 100 index fell 24.94 points to 7430.30, with Aviva among the fallers after Deutsche Bank removed its “buy” recommendation. The shares dropped 8.2p to 416.4p. Renewed hopes that US interest rates will fall in the first part of next year helped Ocado shares to rally 6% or 33p to 600p, while property-focused stocks also fared well after gains of 1.5% for Land Securities and Segro. A stronger pound benefited the FTSE 250 index, which rallied 0.3% or 60.45 points to 18,447.45.
The FTSE 100 is up 5 points at 7,532. The European Central Bank (ECB) is expected to leave interest rates unchanged. JPMorgan has made positive comments on UK motor insurers Direct Line and Admiral. IG Group PLC has reported weaker-than-expected trading results. Elementis plc is the top riser in the FTSE 250 after a report that KPS Capital Partners explored a bid for the company. Wizz Air has reported record traffic and a return to profitability in Q3. Halfords has backed its profit guidance despite tough trading conditions. Haleon has agreed to sell the ChapStick brand to Suave Brands Co. Tesla has reported Q4 earnings below expectations and warned about lower sales growth in 2024. The US Bureau of Economic Analysis is expected to report Q4 GDP figures today. [c9ab2140]
The FTSE 100 is trading little changed now as traders react to US data and comments from ECB President Christine Lagarde. Starting in the US, stocks have opened higher after the growth figures which also showed inflationary pressures have eased. The Dow Jones Industrial Average was up 101.45 points, 0.3%, at 37,907.84, the S&P 500 was up 18.76 points, 0.4%, at 4,887.31 and the Nasdaq Composite was up 75.67 points, 0.5% at 15,557.59. The European Central Bank’s governing council has kept interest rates unchanged, as expected. The ECB’s rate on its main refinancing operations, which provide the bulk of liquidity to the banking system, is at 4.5%. Its deposit rate, which is paid on commercial bank deposits, is at 4%. The marginal lending facility, which offers overnight credit to banks, is at 4.75%. Wizz Air fell 4.5% after its trading update. Halfords dipped 3.6% after the company said increased cost savings will help it hit profit guidance despite tough trading. Dr Martens said its third quarter performance was in line with guidance provided in November but said trading was “volatile,” with a “softer” December. In the three months to December 31, revenue fell 18% at constant currency to 273.8 million and 21% on a reported basis to £267.1 million. Haleon has agreed to sell the ChapStick brand to Suave Brands Co, a portfolio company of Yellow Wood Partners. The consumer brands business, which was spun out of GSK, will receive pre-tax cash proceeds of around $430 million, as well as a passive minority interest in Suave Brands valued at around $80 million. Haleon expects the sale to close in the second quarter.
The share price of FTSE 250 company Dr Martens has fallen 42% in the past six months. The decline is due to a declining top line, particularly in North America, which is impacting earnings. The company's revenue for the year ended March 2023 was £1 billion, with a profit before tax of £159 million. However, analysts do not expect sales to return to this level until FY26, and profit before tax is forecasted to be 16% lower at £134 million. The consensus forecast for earnings per share is 8p in FY24, 8.9p in FY25, and 10.2p in FY26. The company's declining sales and profit, along with increasing production costs, have led to an increase in prices, resulting in a decrease in sales volume. The company's gross profit margin has increased from 59.7% in FY20 to 64.4% in the six months to September 2023. However, this strategy may not be sustainable as customers may go elsewhere if prices continue to rise. The article concludes that the company needs to decide whether its products are for the masses or a high-end fashion item. [2eae2053]
Dunelm's rate of improvement for gross margin is expected to slow down. The company's gross margin has been improving, but the rate of improvement is expected to decrease. The article does not provide specific numbers or dates for this prediction. The article is from MarketScreener and was published on February 14, 2024. The article does not mention the author. The article is about Dunelm, a company whose rate of improvement for gross margin is expected to slow down. [829ede0c]
CFRA, a financial research firm, has raised Experian's share price target to GBP39.00 from GBP34.00, while maintaining a Buy rating. The adjustment reflects an anticipated P/E ratio of 31.7 times for the fiscal year ending in March 2025. Experian's earnings are expected to benefit from its presence in Latin America, particularly due to regulatory reforms in Brazil. In North America, Experian's diversified portfolio and engagement with Tier 1 lenders are believed to offer protection against macroeconomic uncertainties. The company's ongoing transformation efforts in EMEA and Asia Pacific are set to strengthen its performance. CFRA's EPS estimates for Experian remain unchanged, with projected revenue growth of 6% for fiscal year 2024. [ae613bde]