boohoo.com, Wolseley and Card Factory

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“The blue chip index opened in positive territory after a torrid time for US stocks last night,” says AJ Bell Investment Director Russ Mould.

“Online fashion group boohoo.com continued to maintain strong growth across all regions in the first half and expects revenue growth of 30-35% for the full year. Currency exchange movements since the EU referendum have not significantly affected results due to foreign exchange hedges although as many product prices are dollar-based, it remains to be seen what the longer term effect of continued sterling weakness might be in the supply chain. The group continues to look for opportunities to invest in marketing campaigns and will be making significant investments in its IT systems and e-commerce platforms in its drive to be ‘the global fashion leader for a social generation’.”

“Plumbing and heating giant Wolseley was at the foot of the blue chip index in early trading after it announced the planned closure of around 80 branches and a distribution centre in the UK with the loss of around 800 jobs.  Ferguson, its core US business which generates over 80% of the group's trading profit, performed well in the year to the end of July but demand across its markets remains mixed, with some uncertainty in the economic outlook.

Card Factory topped the FTSE250 Index after a solid first half with further growth in both revenue and profit despite softer footfall which resulted in slightly lower than normal sales growth from its stores. The group remains highly cash generative with potential for growth through like-for-like sales, further store roll-out and the full exploitation of its online channels.”

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