London’s FTSE 100 pushed higher on Tuesday as investors welcomed the release of a slew of corporate earnings updates that included relatively positive news from Royal Mail (RMG) and JD Sports Fashion (JD.).
The blue chip benchmark was up 0.63% at 5,974.54 early on, with the FTSE 250 rising 0.24% to 17,684.4.
Royal Mail rallied 11.7% to 195p on the news strong growth in parcel volumes powered better than expected revenues in the five months to August, with the company also updating the market on cost savings generated from an aggressive restructuring.
Tracksuits-to-trainers retailer JD Sports Fashion jumped 7.6% to 779.8p, despite posting a first-half profit fall caused by the retail lockdown, as investors welcomed the reinstatement of full-year guidance following an improved performance since reopening stores.
‘Assuming a prudent but realistic set of assumptions for the peak trading period that reflect an uncertain outlook for consumer confidence, the ongoing challenges of attracting footfall to stores and the potential for further operational restrictions’, the sports fashion purveyor expects to deliver a headline profit before tax for the full year of ‘at least £265 million’.
Another retailer in demand was ScS (SCS), the furniture-to-flooring seller surging 8% higher o 168.5p on news trading since the start of the new financial year has remained strong with better-than-expected like-for-like order intake growth of 51% for the six weeks to 5 September.
Car-parts-to-bicycles retailer Halfords (HFD) reversed 3% to 178.4p as it lifted its first-half profit outlook while also warning of ‘significantly lower’ second-half profit amid easing demand for cycling and staycations products during the winter months.
Global data and information services company Experian (EXPN) improved 3.8% to £29.05 as the company upgraded second quarter organic sales growth guidance to a 3%-to-5% range following stronger trading in July and August.
Packaging company DS Smith (SMDS) firmed 5.3% to 287.3p on announcing that it expects to declare an interim dividend amid an improvement in its like-for-like corrugated box volume performance.
Budget airline EasyJet (EZJ) descended 4% to 603.5p as it cut capacity guidance for the fourth quarter following the introduction of new Covid-19 quarantine measures in Europe.
Animal genetics company Genus (GNS) gained 3.7% to £36.91 after the company raised its dividend following a rise in profit for the year to June, led by an ‘excellent performance’ in its porcine sales business, which benefited from strong demand in China as large producers expanded to fill the supply shortfall caused by African Swine Fever in 2019.
