DIRS.INFO The most relevant business & tech news

☆ Primark sales up 15% in Christmas quarter
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +1 min

LONDON, Jan 24 (Reuters) - Associated British Foods (ABF.L) on Tuesday reported a 15% rise in sales at its Primark clothing business over the 16 weeks to Jan. 7, benefiting from "very strong" trading in the Christmas period. AB Foods said consumer spending had proven to be more resilient in the quarter than anticipated at the start of the financial year. "To date, Primark trading has been good in all our markets and was ahead of expectation," it said. The group said it continued to encounter significant cost pressures but inflation had become less volatile and recently some commodity costs had declined. ($1 = 0.8070 pounds)Reporting by James Davey; Editing by Kate HoltonOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Europe Inc earnings season a test for market optimism
▼ + stars: | 2023-01-23 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

In a sign analysts were unprepared for such optimism, Citi's economic surprise indicator for the euro zone (.CESIEUR) jumped last week to its highest since July 2021. "Companies are telling us that it's going to be harder to pass on rising costs to customers in 2023 as economic growth slows," said Nigel Bolton, co-chief investment officer of BlackRock Fundamental Equities. Fourth-quarter earnings for STOXX 600 companies are forecast to have grown by 10.7% year-on-year, the slowest in two years, according to Refinitiv I/B/E/S data. Earnings are seen bouncing back to growth of 11.4% in the final quarter of the year. Analysts downgrade earnings forecastsReporting by Joice Alves Editing by Josephine Mason and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Britain's M&S to invest $587 mln in store estate
▼ + stars: | 2023-01-16 | by ( James Davey | ) www.reuters.com time to read: +3 min

M&S's move shows the continuing importance of physical stores to retailers despite the rise of online shopping over the last two decades. Last October, M&S set out plans to accelerate what it calls its store rotation programme, delivering what was an initial five-year plan within three years by 2025-26. "Our store rotation programme is about making sure we have the right stores, in the right place, with the right space," said Machin. Twelve new M&S food halls are also planned. In addition to its owned store investment, M&S plans to extend its franchise model to expand its convenience stores offer, building on partnerships with BP, Moto, SSP and Costa.

☆ Goldman Sachs reveals outlook for Greater China tech – and names its top picks for 2023
▼ + stars: | 2022-12-19 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

One segment of the stock market that has been particularly beaten down is the tech sector. Goldman Sachs , however, has a mixed outlook on the sector for 2023. In a note titled "Greater China Tech: Demand outlook by sub-sectors; key indicators and top picks for 2023" on Dec. 9, the bank shared its outlook and top stock picks for the various sub-sectors. Goldman's top picks in the automotive software segment include ThunderSoft, Desay and ArcSoft Corp, while the bank's top pick in the cybersecurity software segment is Beijing Venustech. Smartphones Goldman expects growth in the smartphones segment to remain flattish in 2023, driven by soft shipments in China.

☆ U.K. Tax Change to Yield Higher Costs, but Much-Needed Certainty for Companies
▼ + stars: | 2022-12-04 | by ( Jennifer Williams-Alvarez | Nina Trentmann | ) www.wsj.com time to read: +6 min

Now, under a new prime minister, the government is pledging fiscal austerity, accompanied by an increase in the corporate tax rate to 25%. Photo: Agence France-Presse/Getty ImagesWith the latest change, the corporate tax rate has flip-flopped four times in less than a year. The tax increase, from the current rate of 19%, will apply to companies with annual profit of more than £250,000, equivalent to more than $307,000. We know it is increasing to 25%.”The U.K. government’s change brings the corporate tax rate in line with those of other large economies. Photo: Jason Alden/Bloomberg NewsU.K. companies’ costs are rising on multiple fronts.

☆ U.K. Tax Change to Yield Higher Costs, But Much-Needed Certainty For Companies
▼ + stars: | 2022-12-04 | by ( Jennifer Williams-Alvarez | Nina Trentmann | ) www.wsj.com time to read: +6 min

☆ Stock in a Japanese company that makes MSG is up 29% this year to a record high as it expands its push into the semiconductor industry
▼ + stars: | 2022-12-01 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Ajinomoto Group, which makes food seasoning products including MSG, saw its stock jump to a record high this week. The company also makes semiconductor material. Ajinomoto researchers found it could repurpose co-products from its unami seasoning manufacturing process for use in electronic materials. Ajinomoto shares traded in Tokyo rose 3.8% in Thursday's session to a record closing high of ¥4,501. Ajinomoto moved into the electronic materials industry in 1996 after its researchers found it could repurpose co-products from its unami seasoning manufacturing process.

☆ Analysis: Retailers turn to robots in cost inflation fight
▼ + stars: | 2022-12-01 | by ( James Davey | ) www.reuters.com time to read: +6 min

He estimates the retail industry is 40% automated, but sees that jumping to 60-65% over the next three to four years. The march of the robots can be seen in fashion stores and food shops globally as an industry that employs millions grapples with the cost of rising wages, energy and raw goods. While processes at online retailers are largely automated, vast parts of a traditional retailer's operations are still carried out manually, according to consultants at McKinsey. Looking at the fashion industry, McKinsey expects fashion companies to double investment in technology from 1.6% to 1.8% of their revenue in 2021 to between 3.0% and 3.5% by 2030. "Retailers are saying 'robots are the future,'" Michel Spruijt, Brain Corp's chief revenue officer, told Reuters, adding that the shift could "free up workers from tedious" tasks.

☆ Christmas shopping comes early for Britons in grip of cost crunch
▼ + stars: | 2022-11-15 | by ( James Davey | ) www.reuters.com time to read: +2 min

SummarySummary Companies 30% of Britons began Christmas shopping before mid-OctFigure last year was 18% - NielsenIQ survey findsBudgets stretched by inflationLONDON, Nov 15 (Reuters) - More Britons began their Christmas shopping early this year as they navigate a worsening cost-of-living squeeze by budgeting their spending, market research group NielsenIQ said. Nielsen said sales growth at British supermarkets picked-up over the last month on a value basis, masking a drop in volumes once inflation is accounted for. It said growth was 5.3% in the four weeks to Nov. 5 year-on-year, having increased 4.7% in last month's data set. NielsenIQ said that crisps and snacks and soft drinks were the only two categories to see volume growth in the four week period with growth of 2.9% and 0.6% respectively. General merchandise volume sales fell 7.6%, it said.

☆ Primark website crashes on click and collect debut
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 14 (Reuters) - Fashion retailer Primark's new click and collect online service crashed shortly after its launch on Monday, with some shoppers in Britain unable to access its website. The trial launched in 25 stores across the north west of England, Yorkshire and north Wales for children's products only. "It’s been great to see so much interest in the launch of our new Click + Collect trial," a Primark spokesperson said. Primark is one of the last major retail chains in Britain to introduce online orders, a move partly prompted by the sales it lost during COVID-19 lockdowns. Primark, part of the Associated British Foods (ABF.L) conglomerate, announced the move into click and collect in June but said the move should not be seen as a precursor to an online delivery offer.

In Germany, the HDE retail association is forecasting the strongest slump in Christmas sales since 2007, with retail sales in the crucial November-December period seen dropping by 4% year on year on a price-adjusted basis. In the United Kingdom, a raft of surveys indicate half or more Britons plan to spend less this Christmas. Should September's sharp drop in retail sales be repeated in December, it would be the worst outcome since comparable annual records began in 1989. Official data showed UK retail sales volumes, excluding fuel, dropped 6.2% year on year in September. Another association Acotex expects retailers to offer slight discounts during the holiday season as consumer demand slows.

Machin also noted a trend of more eating at home as consumers look to save money by cutting down on restaurant visits. Katie Bickerstaffe, joint CEO, told reporters that its customers had already bought about 30% of their clothing and homewares Christmas gifts. "People are planning forward a little bit now," she said, highlighting very high demand for Christmas pyjamas. Similarly, Sainsbury's said last week consumers were buying cakes, mince pies and chocolates in advance of Christmas. ($1 = 0.8747 pounds)Reporting by James Davey and Sarah Young; Editing by Kate Holton and Alexander SmithOur Standards: The Thomson Reuters Trust Principles.

LONDON, Nov 9 (Reuters) - Some European retailers this week forecast or reported better full-year sales after working to keep prices low to attract cash-strapped shoppers although others, including Marks & Spencer (MKS.L) and Adidas (ADSGn.DE) warned on profit. Many consumers have turned to cheaper private-label products, boosting sales for retailers like Dutch grocer Ahold Delhaize and Primark owner Associated British Foods (ABF.L), as they face a prolonged cost-of-living crisis. On Wednesday, Ahold raised its annual outlook for the third time this year, expecting low-double-digit earnings per share growth versus a prior mid-single-digit guidance. Carrefour said it would step up its expansion in e-commerce, open more discount stores and cut costs as it detailed its new turnaround strategy, . LUXURY GAPHaving less disposable income has meant many shoppers are holding back on buying mid-market clothes and other discretionary items.

☆ Primark owner AB Foods warns of 'substantial' cost inflation
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 8 (Reuters) - Primark owner Associated British Foods (ABF.L) faces "substantial and volatile" input cost inflation that will hit results in its current financial year, it said on Tuesday, taking the shine off a 42% jump in 2020-21 profit. AB Foods, which also owns sugar, grocery, ingredients and agricultural businesses, reported annual adjusted operating profit of 1.44 billion pounds ($1.65 billion), up from 1.01 billion pounds in 2020-21, mainly reflecting higher Primark sales after the end of COVID-related restrictions. The group also announced a 500 million pound share buyback programme and an 8% increase to its total dividend. AB Foods expects 2022-23 profit in its grocery business, which includes Twinings tea, Jordans cereals, Kingsmill bread and Ovaltine drinks, to be broadly in line with 2021-22. ($1 = 0.8705 pounds)Reporting by James Davey Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ UK's FTSE 100 falls as miners, energy stocks weigh
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: +1 min

SummarySummary Companies FTSE 100 down 0.6%, FTSE 250 off 0.3%Nov 8 (Reuters) - British stocks fell on Tuesday, dragged down by miners and energy sector shares on worries of softening demand from China, while shares of Associated British Foods jumped after posting higher annual profit. The export-oriented FTSE 100 index (.FTSE) fell 0.6% by 0818 GMT. Energy firms (.FTNMX601010) slipped 1.1%, while miners (.FTNMX551030) shed 0.4%, as worsening COVID-19 outbreaks in China receded hopes of recovering demand for raw materials. METL/The home construction sector index (.FTNMX402020) fell 4.0% after Persimmon (PSN.L) tumbled 8.4%, as Britain's second-largest housebuilder said its sales rate slipped further in the last six weeks. In a bright spot, Associated British Foods (ABF.L) jumped 4.7% to the top of the FTSE 100, after the Primark owner reported a 42% surge in 2021-22 profit.

☆ Primark’s price freeze is risky inflation gambit
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 8 (Reuters Breakingviews) - Primark is breaking with the pack to navigate soaring inflation. Its largest rival Inditex (ITX.MC), owner of Zara, is taking a different approach by hiking prices over the next year. AB Foods Chief Executive George Weston appears to be willing to sacrifice Primark’s near 10% operating margin to keep price-sensitive customers happy. Assume inflation shaves almost 3 percentage points off the retail unit’s operating margin next year, taking it down to 7%. The 4% bump in AB Foods’ share price on Tuesday suggests investors reckon the plan may work.

☆ Logistics Companies Are Reversing Their Hiring Binge
▼ + stars: | 2022-11-04 | by ( Liz Young | ) www.wsj.com time to read: +4 min

The hiring frenzy in logistics driven by pandemic-fueled shopping appears to be cooling off. “We got ahead of ourselves in terms of head count,” said Bob Biesterfeld, chief executive of C.H. Newsletter Sign-up The Logistics Report Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology. Chief Executive Judy McReynolds said the company would now look to get “greater efficiency” from the people it already employs. “We aren’t really hiring other than filling vacancies and whatnot,” Chief Executive Greg Gantt said on an Oct. 26 earnings call.

☆ UK's Next cuts profit forecast as shoppers feel the squeeze
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

Next, which trades from about 500 stores and online, said it now expected full price sales in its second half of its financial year to fall 1.5%, and a full year pretax profit of 840 million pounds ($905 million), up 2.1% versus 2021-22. It previously forecast second-half full price sales growth of 1% and a full year pretax profit of 860 million pounds. The group reported a pretax profit of 401 million pounds for the six months to July, up 16%, with full price sales up 12.4%. read more read moreThe government also announced a raft of tax cuts and help on energy costs for both consumers and businesses, but the pound/U.S. ($1 = 0.9282 pounds)Register now for FREE unlimited access to Reuters.com RegisterReporting by James Davey; editing by Jason Neely and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

Search resuls for: "ABF"

18 mentions found