Frasers shares jump, Dunelm sales slip, Moneysupermarket beats expectations, Howdens upbeat and M&S loses CFO

“A barrage of mid-cap news has whetted the appetite of investors hungry for updates on UK companies.” says Russ Mould, Investment Director at AJ Bell.

“Overall, the FTSE 100 tried its best to push ahead at the market open, but momentum was quickly lost. Miners, consumer goods, utilities and tobacco stocks dragged the market down, which is a shame after the progress made last week among large cap UK stocks.”

“Standout stocks included Frasers, which jumped 16% after reporting a record-breaking year amid strong growth across its business. Although that must be viewed in the context of Covid recovery, with the comparative period negatively affected by lockdowns.

“One would have guessed sportswear and equipment sales might be vulnerable to a deteriorating economic climate, yet Frasers remains relatively upbeat. It’s not a bad start for Michael Murray as the new chief executive, who has some big shoes to fill after taking over from father-in-law Mike Ashley. It helps that a business strategy was already in place when he took over, concentrating on both ‘pile ‘em high, sell ‘em cheap’ Sports Direct stores and posher, upmarket outlets.”

Dunelm

“Dunelm has been one of the more resilient retailers in recent years, but its last quarter seems to have been a bit of a challenge, with sales down 6% year-on-year, albeit better than analyst forecasts. Fortunately, its current quarter has got off to a good start, perhaps helped by the warm weather encouraging people to spruce up their outdoor and indoor spaces. Dunelm is well placed to shift garden furniture and its value proposition will appeal to people feeling the pinch from the higher cost of living.”

Moneysupermarket

“Surging energy prices have made it almost impossible for Moneysupermarket to help consumers find better energy deals, because there aren’t any.

“Nonetheless, its half-year results have still beaten expectations thanks to strong demand for comparing products in the money and travel channels. People under financial pressure might be able to save a few quid by switching financial products, and the pent-up demand for a week in the sun will have seen holidaymakers shop around for the best travel insurance deals.”

Howden Joinery

“After two years of people thinking more about their personal living spaces and splashing the cash on a range of home improvement projects, there was a sense of trepidation ahead of companies in the space reporting their results. Could the home improvement boom be petering out? Howden Joinery’s results would suggest not. Its trading continues to be very strong and the company remains as upbeat as ever.”

Marks & Spencer

“Just as you think everything has settled down at Marks & Spencer along comes more drama. Chief financial officer Eoin Tonge is packing his bags to join Primark’s owner, Associated British Foods. This might come as a surprise to the market given Tonge was considered an important part of the new dream team at M&S, led by co-heads Stuart Machin and Katie Bickerstaffe. Tonge’s departure won’t do much for M&S’ reputation as a retailer with a revolving door. Just what it is about the company’s culture that causes so many people to join, and then quickly leave?”

These articles are for information purposes only and are not a personal recommendation or advice.