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Marks & Spencer, Tesco, Debenhams, Primark and JD Sports lead flurry of Christmas trading news – business live Marks & Spencer, Tesco, Debenhams, Primark and JD Sports lead flurry of Christmas trading news – business live
(35 minutes later)
10.21am GMT
10:21
Pharma shares hit by Trump comments
Speaking of Donald Trump, one market moving comment in his press conference related to pharmaceutical companies.
He said drugs companies were “getting away with murder” in the prices they charged and promised that would change. That sent US pharma stocks lower, and theat sentiment has carried over into Europe.
So Shire, Hikma, GlaxoSmithKline and AstraZeneca have all seen their shares fall. Michael Hewson, chief market analyst at CMC Markets, said:
If pharmaceutical companies were hoping for an easier ride from President elect Donald Trump than Hillary Clinton they were quickly disabused of this notion last night when the President elect let rip at the industry’s pricing policies.
Last year was notable for a number of stories related to price gouging including the Mylan story around the Epipen price hikes, and Valeant’s policy of buying older niche drugs and then hiking the prices aggressively, and the antipathy that resulted from these stories has made the industry an easy target for a President who may feel compelled to get some quick political wins.
At a time when pharmaceutical companies were hoping for a more benign investment environment last night’s remarks were a reminder, if any were needed, as well as a warning to the sector and other sectors as well, of the President elects propensity to adopt a scatter gun approach to domestic policy.
Investors would do well to bear this in mind given that the recent stock market rally doesn’t appear to have factored this into their investment scenarios. The Trump Presidency is unlikely to be a one way bet for stock markets.
Updated
at 10.37am GMT
10.16am GMT
10:16
A stronger pound is also taking some of the shine off the leading index.
One of the driving factors behind the recent surge in the FTSE 100 to record levels has been the weakness of sterling, which benefits overseas earners and makes UK assets more attractive to international investors.
But disappointment that president-elect Donald Trump - in his first press conference since July - failed to spell out details of his plans to boost the US economy with infrastructure spending and new tax measure has sent the dollar lower.
Against the US currency the pound has added 0.32% to $1.2252, although sterling is virtually flat against the euro at €1.1528.
10.12am GMT
10:12
The FTSE 100 has slipped back after its record breaking run of ten consecutive closing highs, and is currently down 0.22% at 7274.
Retailers have received a mixed reception to their Christmas updates, with Marks & Spencer and JD Sports moving sharply higher, but Tesco, Primark owner Associated British Foods and AO World all disappointing investors.
9.40am GMT9.40am GMT
09:4009:40
Stockbrokers Shore Capital are extremely unamused that Tesco, M&S, Debenhams, ASOS et al all decided to release their results today in a “chaotic” splurge.Stockbrokers Shore Capital are extremely unamused that Tesco, M&S, Debenhams, ASOS et al all decided to release their results today in a “chaotic” splurge.
They say:They say:
The British retail trade has decided to make many market updates today.The British retail trade has decided to make many market updates today.
Such dis-coordination, to put it politely, does not serve shareholders and investors well. Investor relations executives should hold their respective heads in shame at the chaotic volume of information coming out today whilst seeking for a more balanced information flow in 2018.Such dis-coordination, to put it politely, does not serve shareholders and investors well. Investor relations executives should hold their respective heads in shame at the chaotic volume of information coming out today whilst seeking for a more balanced information flow in 2018.
UpdatedUpdated
at 9.45am GMTat 9.45am GMT
9.35am GMT9.35am GMT
09:3509:35
As feared, AO World’s cautious trading statement has gone down badly in the City.As feared, AO World’s cautious trading statement has gone down badly in the City.
Shares in the online electrical supplier have slumped by 8.7%, after it warned that the economic outlook is uncertain.Shares in the online electrical supplier have slumped by 8.7%, after it warned that the economic outlook is uncertain.
9.18am GMT9.18am GMT
09:1809:18
Conservative MP Margot James has applauded John Lewis and Marks & Spencer for their Christmas performance:Conservative MP Margot James has applauded John Lewis and Marks & Spencer for their Christmas performance:
Congratulations to directors and staff at John Lewis for their excellent Xmas season results, also to M&S - great to see clothing sales upCongratulations to directors and staff at John Lewis for their excellent Xmas season results, also to M&S - great to see clothing sales up
The Daily Mail’s Sabah Meddings tweets more details:The Daily Mail’s Sabah Meddings tweets more details:
Strong results from John Lewis come with a warning staff bonuses will be lower due to tough trading...Strong results from John Lewis come with a warning staff bonuses will be lower due to tough trading...
Waitrose will become 'more Waitrose' - says Sir Charlie MayfieldWaitrose will become 'more Waitrose' - says Sir Charlie Mayfield
9.03am GMT9.03am GMT
09:0309:03
John Lewis: Bonuses will be down this yearJohn Lewis: Bonuses will be down this year
As if we didn’t have enough to deal with, John Lewis has decided to put its Christmas trading figures out today too.As if we didn’t have enough to deal with, John Lewis has decided to put its Christmas trading figures out today too.
And it has warned its staff that their famous annual bonus is likely to be rather lower this year, even though sales and profits have risen.And it has warned its staff that their famous annual bonus is likely to be rather lower this year, even though sales and profits have risen.
Like-for-like sales at John Lewis stores rose by 2.7% in the six weeks to December 31, while Waitrose like-for-like sales were up 2.8%.Like-for-like sales at John Lewis stores rose by 2.7% in the six weeks to December 31, while Waitrose like-for-like sales were up 2.8%.
A successful promotional campaign, including one day only offers for Christmas staples, such as champagne and crackers, proved effective in building footfall in the pre-Christmas period.A successful promotional campaign, including one day only offers for Christmas staples, such as champagne and crackers, proved effective in building footfall in the pre-Christmas period.
Profits for the year to 28 January 2017 will probably be up on last year, thanks to lower pension charges. But JLP says that trading profits are under pressure, due to the boom in internet shopping and the fall in the pound.Profits for the year to 28 January 2017 will probably be up on last year, thanks to lower pension charges. But JLP says that trading profits are under pressure, due to the boom in internet shopping and the fall in the pound.
The most obvious of these changes is the channel shift from shops to online.The most obvious of these changes is the channel shift from shops to online.
The other major influence is pricing, where deflation continues in food and non-food, despite rising input costs as a result of weakness in the Sterling exchange rate.The other major influence is pricing, where deflation continues in food and non-food, despite rising input costs as a result of weakness in the Sterling exchange rate.
These factors are significant for the outlook where we expect both inflationary cost pressures and competition to intensify in the market as a whole.These factors are significant for the outlook where we expect both inflationary cost pressures and competition to intensify in the market as a whole.
The rate of retail market sales growth may slow and the rate of profit growth that is achievable will be affected by margin pressure.The rate of retail market sales growth may slow and the rate of profit growth that is achievable will be affected by margin pressure.
And staff are going to be hit in the pocket, when the bosses decide how much of the profits to share with them.And staff are going to be hit in the pocket, when the bosses decide how much of the profits to share with them.
The Partnership Board will decide on the level of Bonus in March, but, given the challenging market outlook and the importance of investment for the future, the Board expects that bonus is likely to be significantly lower than last year.The Partnership Board will decide on the level of Bonus in March, but, given the challenging market outlook and the importance of investment for the future, the Board expects that bonus is likely to be significantly lower than last year.
UpdatedUpdated
at 9.15am GMTat 9.15am GMT
8.41am GMT8.41am GMT
08:4108:41
Boom! Shares in JD Sports have hit a new all-time high, romping up by 6% to 346p.Boom! Shares in JD Sports have hit a new all-time high, romping up by 6% to 346p.
That puts it top of the FTSE 250 index of medium-sized companies.That puts it top of the FTSE 250 index of medium-sized companies.
Traders are applauding the firm’s 10% jump in sales over ChristmasTraders are applauding the firm’s 10% jump in sales over Christmas
8.38am GMT8.38am GMT
08:3808:38
And finally, here are those smaller retailers...And finally, here are those smaller retailers...
Baby goods retailer Mothercare has reported a 1% jump in like-for-like sales in the last quarter, driven by online sales. More here.Baby goods retailer Mothercare has reported a 1% jump in like-for-like sales in the last quarter, driven by online sales. More here.
Fashion chain SuperGroup says it had a good half-year, with revenues rising to £334.0m, from £254.7m. More here.Fashion chain SuperGroup says it had a good half-year, with revenues rising to £334.0m, from £254.7m. More here.
Top hat and tails purveyor Moss Bros has posted a 6% jump in like-for-like sales. CEO Brian Brick says “ongoing investment in new and refitted stores” is paying off. More here.Top hat and tails purveyor Moss Bros has posted a 6% jump in like-for-like sales. CEO Brian Brick says “ongoing investment in new and refitted stores” is paying off. More here.
Dunelm, the homewares firm, had a solid but unspectacular festive period with like-for-like sales up 0.2%. More here.Dunelm, the homewares firm, had a solid but unspectacular festive period with like-for-like sales up 0.2%. More here.
No drama at food wholesale chain Booker Group; it’s on track to hit City forecasts this year.No drama at food wholesale chain Booker Group; it’s on track to hit City forecasts this year.
8.26am GMT8.26am GMT
08:2608:26
ASOS boosted by slide in sterling.ASOS boosted by slide in sterling.
Online fashion chain ASOS has reported bumper sales growth over Christmas, up 18% in the UK.Online fashion chain ASOS has reported bumper sales growth over Christmas, up 18% in the UK.
International sales surged by 52%, as ASOS benefits from the weak pound, and the company is now planning to upgrade its systems and processes to handle higher demand.International sales surged by 52%, as ASOS benefits from the weak pound, and the company is now planning to upgrade its systems and processes to handle higher demand.
CEO Nick Beighton says:CEO Nick Beighton says:
“With sales for the year now expected to be up by c.25 percent to 30 percent, we’re accelerating our infrastructure investment to handle that growth.”“With sales for the year now expected to be up by c.25 percent to 30 percent, we’re accelerating our infrastructure investment to handle that growth.”
Asos posted strong results for the four months to 31 December. Total retail sales rose 36% to £605.7m, and revenues also rose 36%.Asos posted strong results for the four months to 31 December. Total retail sales rose 36% to £605.7m, and revenues also rose 36%.
8.20am GMT8.20am GMT
08:2008:20
Tesco’s shares have fallen by 2.3% in early trading.Tesco’s shares have fallen by 2.3% in early trading.
That making it the worst-performing member of the FTSE 100, even though it grew sales by 0.7% over Christmas.That making it the worst-performing member of the FTSE 100, even though it grew sales by 0.7% over Christmas.
Tesco is holding a conference call now, and saying it’s not seen any change in UK consumer spending since the EU referendum.Tesco is holding a conference call now, and saying it’s not seen any change in UK consumer spending since the EU referendum.
John Ibbotson of Retail Vision argues that Tesco’s results are encouraging:John Ibbotson of Retail Vision argues that Tesco’s results are encouraging:
“Tesco’s revival continues apace, with a strong Christmas trading period and third quarter.”More ominously for its competitors, Tesco has managed to increase its market share in a period of cut-throat competition.“Tesco’s revival continues apace, with a strong Christmas trading period and third quarter.”More ominously for its competitors, Tesco has managed to increase its market share in a period of cut-throat competition.
8.07am GMT8.07am GMT
08:0708:07
Shares in M&S have jumped by almost 5% at the start of trading, as investors cheer its best festive performance for six years.Shares in M&S have jumped by almost 5% at the start of trading, as investors cheer its best festive performance for six years.
That’s makes it the best-performing share on the FTSE 100.That’s makes it the best-performing share on the FTSE 100.
My colleague Zoe Wood explains:My colleague Zoe Wood explains:
Marks & Spencer has ended the long-running slump in sales at is clothing arm with its best Christmas performance for six years.Marks & Spencer has ended the long-running slump in sales at is clothing arm with its best Christmas performance for six years.
The retailer said like-for-like clothing sales were up by 2.3% in the 13 weeks to 31 December. This time last year clothing sales had slumped by nearly 6%.The retailer said like-for-like clothing sales were up by 2.3% in the 13 weeks to 31 December. This time last year clothing sales had slumped by nearly 6%.
M&S chief executive Steve Rowe said “better ranges, better availability and better prices” had helped it improve its performance in a difficult marketplace.M&S chief executive Steve Rowe said “better ranges, better availability and better prices” had helped it improve its performance in a difficult marketplace.
To win back shoppers, Rowe has already cut clothing prices and promised to pay more attention to its most loyal group of shoppers – fiftysomething women he has dubbed “Mrs M&S”. He also slashed the number of promotions run by the store.To win back shoppers, Rowe has already cut clothing prices and promised to pay more attention to its most loyal group of shoppers – fiftysomething women he has dubbed “Mrs M&S”. He also slashed the number of promotions run by the store.
More here:More here:
UpdatedUpdated
at 8.14am GMTat 8.14am GMT
8.04am GMT
08:04
Online electricals retailer AO World has dampened the mood, despite decent sales growth over Christmas.
AO says that it is cautious about trading conditions, due to
“the uncertain UK economic outlook, currency impacts on supplier pricing and the possible effect on consumer demand”
On the upside, total revenues in the three months to December 31 were up 12.3% year-on-year. But that may not be enough to cheer investors.
CEO John Roberts says:
Looking ahead we have three months left of the current financial year and are mindful of the uncertain economic outlook. However, we remain confident that our market leading proposition will continue to drive customers to experience the AO Way and enter the New Year excited by the opportunities ahead.”
AO World warns of uncertain end to year https://t.co/dYitTVH2qd
7.55am GMT
07:55
Julia Kollewe
JD Sports has also reported strong sales and expects to beat City forecasts for profits in the current year.
It said the like-for-like growth of about 10% achieved in the first half had continued in the second half of its financial year to 7 January.
JD now expects that headline profit before tax and one-off items for the current financial year will exceed analysts’ expectations of £200m by up to 15%.
Peter Cowgill, executive chairman, said:
“Whilst we acknowledge that it would be unreasonable to expect like for like sales growth to be maintained at recent levels for a fifth consecutive year, we are confident that both domestically and internationally, our unique and often exclusive sports fashion premium brand offer provides a solid foundation for future development.”
The trading update did not mention the firm’s investigation into conditions at its Kingsway warehouse near Rochdale after a Channel 4 documentary found workers claiming it was “worse than a prison”.
City veteran David Buik reckons JD have outperformed Sports Direct.
Good numbers from JD Sport - eat your heart out Mike Ashley!
Updated
at 7.56am GMT
7.51am GMT
07:51
City commentators are fairly impressed with the results of Retail Super Thursday.
Here’s ITV’s Chris Choi:
Looks like Tesco's fight-back is going well; and at last M&S clothing looking a bit more popular
The BBC’s Dominic O’Connell points out that M&S’s 2.3% jump in clothing/home sales are flattered by an extra week’s trading - take that out, and it only grew by 0.8%. Still growth, though!
Big result for Steve Rowe @marksandspencer - Christmas clothing sales up 0.8% once you take out extra days trading @BBCr4today
The BBC’s Emma Simpson flags up that Tesco is growing market share again, after a five-year haitus:
Tesco also says its grown its market share for the first time since 2011.
Resolution Group’s Duncan Weldon says the UK consumer seems to be in good spirits over Christmas:
Both M&S & Tesco like for like UK sales (and Morrisons yesterday) pointing to a relatively perky UK consumer.
In stores, Tesco served 266 customers every second during its peak trading period at lunchtime on Christmas eve
7.45am GMT
07:45
Primark has a 'good' Christmas
Associated British Foods, the firm behind the Primark chain, says that trading across its business was “good” in the last 16 weeks.
However, we don’t have any like-for-like figures for Primark.
Total sales at Primark were up 11% year-on-year in ‘constant currency terms’, or a chunky 22% in actual currency terms (thanks to the fall in sterling).
ABF says:
The UK performed well. Like-for-like sales for the period were good and market share increased reflecting the strength of our consumer offering. Like-for-like sales for the group were held back by declines, albeit smaller than last year, in Germany and the Netherlands, the latter particularly affected by the rapid increase in selling space.
Primark numbers smash it again. +11% over Christmas, 22% if you take weaker Sterling. Plan to open over 1mn sq ft in current financial year
Primark says Xmas trading was good - but no figures given
7.35am GMT
07:35
Debenhams: Christmas sales up 5%
Onto Debenhams...and it’s also beaten forecasts as customers clamoured for beauty products and gifts.
My colleague Julia Kollewe has taken a look, and reports:
Debenhams has reported better than expected Christmas trading. Like-for-like sales grew 5% in the seven weeks to 7 January and were up 1.7% at constant exchange rates.
Over the 18 weeks to 7 January, group like-for-like sales at constant exchange rates edged up 0.5%, with UK sales stronger, at 1% growth.
Analysts had expected a 1% drop in underlying sales.
The retailer said beauty and gift sales grew strongly to take the non-clothing sales mix to 57%. It has cut back on promotions overall but said it had a successful Black Friday.
7.30am GMT
07:30
Tesco: 3rd successful Christmas in a row
Tesco has also posted a decent-looking performance over Christmas, with a 0.7% rise in like-for-like sales in the UK - driven by sales of toys and clothes.
That’s despite not repeating last year’s loyalty card promotion which it said had hit performance by 0.8%.
Here’s the details:
Food like-for-like sales up 1.3%, with significant market outperformance in fresh food
Impact of minus 0.8% on total UK like-for-like sales from not repeating Clubcard ‘Boost’ promotion, leading to lower general merchandise sales
Strong performance in clothing and toys, with sales up 4.3% and 8.5% respectively
CEO Dave Lewis says this is Tesco’s third successful Christmas in a row
We are very encouraged by the sustained strong progress that we are making across the Group. In the UK, we saw our eighth consecutive quarter of volume growth and delivered a third successful Christmas. Our fresh food ranges proved particularly popular, outperforming the market with great quality, innovative new products and even more affordable prices. Internationally, we have continued to focus on improving our offer for customers in challenging market conditions.
We are well-placed against the plans we shared in October to become more competitive for customers, simpler for colleagues, and an even better partner for our suppliers, whilst creating long-term value for our shareholders.
I would like to thank all of our colleagues for everything they have done to serve our customers brilliantly over this very busy period.”
7.21am GMT
07:21
Today’s results are a boost to Marks & Spencer’s new CEO, Steve Rowe, who recently announced a turnaround plan for the business centered on its food business.
Rowe says:
“I am pleased with the customer response we have seen to the changes we are making in line with our plan for the business. I would like to thank the whole team for their hard work over this busy period.
“In Clothing & Home, better ranges, better availability and better prices helped to improve our performance in a difficult marketplace. We also continued to substantially reduce discounting, including over Black Friday.
“Our Food business continues to grow market share with customers recognising our product as special and different. Our Simply Food store pipeline remains strong.”
Rowe warms, though, that consumer confidence remains “uncertain” in 2017.
Updated
at 7.22am GMT
7.19am GMT
07:19
Marks & Spencer beats forecasts
Marks & Spencer has beaten City forecasts, with sales growth across its food, clothing and homeware operations.
The high-street chain grew its like-for-like sales in the UK by 1.3%, led by a 2.3% jump in clothes and homeware.
That’s a welcome return to form for M&S, after years of underperformance in this area.
Can it be true M&S... clothing and home lfl +2.3%
Food sales also did well, up 0.6% in a like-for-like basis (stripping out new stores).
Here’s the details:
7.13am GMT
07:13
And we’re off! A mass of trading news is flashing across the wires as all 12 retailers report their results to the City.
7.06am GMT
07:06
The agenda: Masses of Christmas trading news
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
They’re calling it Retail Super Thursday in the City.
No fewer than 12 of Britain’s shopping groups are reporting their financial results for the Christmas period this morning, giving a crucial insight into the UK economy.
The list includes several big names -- Marks & Spencer, Tesco and Debenhams, along with JD Sports, SuperGroup, Mothercare, Associated British Foods (the owner of Primark), Moss Bros, ASOS, Booker Group, Dunelm, and AO.com.
A huge number of retailers updating markets tomorrow: AO., ASC, ABF, BDEV, DEB, DNLM, MCLS, MKS, MTC, MOSB, SGP, TSCO
Veteran analyst Nick Bubb sighs:
“Super Thursday” is a nightmare for retail analysts with about a dozen Christmas trading announcements all coming out at once at 7am.
But it’s worth it, guys, to find out how Britain’s high street and e-commerce sector fared during the first festive period since the Brexit vote.
Also coming up....
There’s not much in the economic calendar today, apart from a report on German GDP in 2016 at 9am, eurozone industrial production figures at 10am, and the weekly US jobless report at 1.30pm.
Plus, traders will be watching to see if the FTSE 100 can extend its run of record highs....
Updated
at 8.28am GMT