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magazineTed Baker, Ferguson, Games Workshop, and more of the week’s big news
Faded British design champion Ted Baker (TED) continues to suffer, falling more than 25% as it warned profit for the year to January 2020 would fall significantly short of forecasts (11 Jun).
The company, reeling from the recent departure of founder Ray Kelvin amid a storm of controversy, guided for underlying profit of between £50m and £60m. Broker Liberum Capital reduced its own forecast from £70.7m to £50.3m.
Liberum suggested in the wake of this latest warning that the stock might be vulnerable to a takeover.
In a very different part of the retail sector, table-top games specialist Games Workshop (GAW) continues to thrive. Its stock hit fresh new highs close to £50 as, despite the previous year being a hard act to follow, it unveiled strong sales and profit growth for the year to 2 June.
HOUSEBUILDERS IN FOCUS
Several updates put the spotlight on the housebuilding sector, including MJ Gleeson (GLE) chief executive Joylon Harrison departing on 10 June after a row over his remuneration.
A day later Bellway (BWY) and Crest Nicholson (CRST) saw their shares largely unchanged as both revealed some pressure on margin performance.
This was exacerbated at Crest by the company’s transition away from high-end properties in the south east to homes at lower price points and areas like build-to-rent.
WASHOUT FOR FERGUSON
Moving across the Atlantic, plumbing products firm Ferguson (FERG) looked a victim of a slowdown in the US construction market, partially caused by severe rain, as quarterly organic growth from its main country of operation fell to 3.3% from 9.7% in the previous three-month period.
The company attempted to soften the blow for investors with news of a $500m share buyback programme, but the stock tumbled on the growth disappointment.
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