Asia Growth Lifts Hermes Results; Morrison Net Surges, Next Profit Plunges

Sarla Buch
14 Sep, 2017
New York City

Booker sales increased 1.1%. John Lewis tumbled on flat revenues. Morrison profit surged 46% but sales growth was weaker than expectation. Next lifted full-year forecast. Hermes International profit and revenues led by increase in Asia.

[R]4:00 PM Frankfurt – Booker sales increased 1.1%. John Lewis tumbled on flat revenues. Morrison profit surged 46% but sales growth was weaker than expectation. Next lifted full-year forecast. Hermes International profit and revenues led by increase in Asia.[/R]

In London trading, FTSE 100 index decreased 66.38 or 0.9% to 7,313.32 and in Frankfurt the DAX index slipped 39.96 or 0.3% to 12,514.01.

In Paris, CAC 40 index fell 5.58 to 5,212.01.

Booker Group Plc gained 1.1% to 200.20 pence after the U.K.-based food wholesaler said group sales in the second-quarter ending on September 8 increased 1.1% and comparable sales rose 1.3% driven by strong performance in catering and retail supply.

Non-tobacco sales increased 6% but comparable sales tobacco sales declined 9.4%.

John Lewis of Hungerford Plc tumbled 17.8% to 1.11 pence after the U.K.-based home furnishings retailer forecasted revenues in the year ending in August were flat from a year ago to £8.2 million and the retailer said it plans to close showrooms in Tunbridge Wells and Harrogate.

London Stock Exchange Group Plc fell 0.2% to 3,859 pence after the trading services provider agreed to buy an additional stake of up to 6.8% in its clearing subsidiary LCH Group Holdings Ltd from some of its minority shareholders.

WM Morrison Supermarkets Plc declined 4.8% to 233.30 pence after the U.K.-based supermarket chain reported revenues in the first-half ending in July jumped 4.8% from a year ago to £8.4 billion.

Comparable sales in the period increased 3%.

Net profit in the year surged 46.4% to £161 million from £110 million in a year ago six-month period and diluted earnings per share rose to 6.81 pence from 4.68 pence.

The supermarket chain said pre-tax profit in the period soared 39.9% to £200 million from £143 million in the same period a year ago.

Next Plc surged 10.2% to 4,875.45 pence after the U.K.-based specialty retailer said total sales in the first-half ending in July slumped 2.2% from a year ago to £1.9 billion.

Net profit in the period plunged 7.8% to £252.2 million from £273.5 million in a year ago six-month period and diluted earnings per share dropped to 176.5 pence from 187.1 pence.

The fashion chain reported pre-tax profit declined 9.5% to £309.4 million and gross profit fell 4.7% to £602.2 million from the same period a year ago.

""We are taking the opportunity to modestly upgrade our sales and profit guidance for the full year,"" said chief executive officer Lord Wolfson.

Hermes International SCA slumped 2.5% to €421.50 after France-based luxury products maker reported revenues in the first-half ending in June soared 11% from a year ago to €2.7 billion.

Net profit in the period jumped 10.9% to €605.2 million from €545.4 million in a year ago six-month period.

The luxury products maker said operating income in the period jumped 13% to €931 million and operating cash flows advanced 14% to €794 million.