Fuller’s raises a glass to profit hike

 

Adam Vettese, market analyst at eToro says: “With the cost of living crisis hitting consumers leaving many hospitality business struggling, Fuller’s seems to have bucked the trend, with its latest results showing a 40% increase in profit year-on-year. The company has been strategic in making acquisitions and disposals to retain the best performing venues in its portfolio, a strategy that is paying off in resisting the pressures currently facing the industry. Investors will also be pleased to see the dividend increased and more buybacks on the way.

“Despite the profit growth, there are a few potential hurdles ahead. Operating costs are on the rise, driven by energy, food, and wage inflation. Increases in the National Living Wage and National Insurance contributions could erode margins, requiring sustained pricing power or cost efficiencies to maintain profitability.”

 

 

“It’s clear that the fashion retailer may face a more subdued pace of growth in 2025 compared to last year.”

 

Garry White, Chief Investment Commentator at Charles Stanley comments: “Sales growth at Zara-owner Inditex was slightly better than expected in the first quarter, but it’s clear that the fashion retailer may face a more subdued pace of growth in 2025 compared to last year.

“While the uptick in sales is encouraging, the company is evidently feeling the effects of reduced consumer spending and a slowing global economy. These results suggest that Inditex continues to navigate a challenging retail landscape effectively, leveraging its agile supply chain and trend-responsive collections. However, currency fluctuations and broader macroeconomic uncertainty remain potential obstacles.

“The United States, Inditex’s second-largest market after Spain, was highlighted by management as a key contributor to overall sales growth. Nonetheless, the group remains exposed to shifts in consumer confidence, and the outcome of Donald Trump’s ongoing trade war could have a significant impact in the months ahead. Although the solid performance should bolster investor confidence in the group’s resilience, the more muted growth outlook may temper expectations for the remainder of the financial year.”

A strong spring period gives Bellway a welcomed boost

 

Mark Crouch, market analyst at eToro says: “Following a shaky start to the year, Bellway’s latest trading update has laid another brick in rebuilding investor confidence. The British homebuilder has raised its full-year volume output forecast to between 8,600 and 8,700 homes, as demand finally shows signs of firming up. A stronger-than-expected Spring selling season boosted both the forward order book and private reservation rates, a welcome lift for the sector.

“It’s encouraging news for investors, especially as concerns around housing affordability had been gaining traction. However, not all the news is solid, Bellway has slipped further into debt, a notable development after proudly maintaining a net cash position for so long and one investors will hope is not a growing trend.

“Like its peers, Bellway is walking a tightrope. Inflation, the unwelcome guest that never quite left, reared up again in April, hitting a 14-month high. That raises pressure on mortgage rates just as buyers had been bracing for relief. And while demand remains strong, for many would-be homeowners, the wait for lower rates may just be getting longer.”

 

 



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