Deutsche Post Reaffirms Outlook on Global Strength, Zalando Plunges 10%

Sarla Buch
06 Nov, 2018
New York City

Adecco beats earnings estimates. Deutsche Post profit tumbled and reaffirmed fiscal outlook. Hugo Boss net plunged on weak revenues. SGL Carbon lifted fiscal outlook. Zalando net soared 14% on 16% jump in revenues.

[R]4:00 PM Frankfurt – Adecco beats earnings estimates. Deutsche Post profit tumbled and reaffirmed fiscal outlook. Hugo Boss net plunged on weak revenues. SGL Carbon lifted fiscal outlook. Zalando net soared 14% on 16% jump in revenues.[/R]

In London trading, FTSE 100 index dropped 60.11 0.9% to 7,043.73 and in Frankfurt the DAX index edged down 2.16 to 11,492.78.

In Paris, CAC 40 index slipped 19.45 or 0.4% to 5,082.94.

Adecco Group AG jumped 2.8% to 49.39 Swiss francs after Switzerland-based staffing service provider reported net sales in the nine-month period ending in September rose 1% from a year ago to €17.7 billion.

Net profit in the period soared 16% to €570 million from €491 million in a year ago period and diluted earnings per share jumped to €3.43 from €2.89.

In the quarter, Adecco completed the sale of its stake in Beeline for €113 million.

The Deutsche Post AG advanced 4.2% to €29.09 after Germany-based postal and courier service provider reported revenues in the third-quarter ending in September rose 0.7% from a year ago to €44.3 billion.

Net profit in the period tumbled 29.3% to €1.4 billion from €2 billion in a year ago period and diluted earnings per share slumped to €1.01 from €1.51.

Deutsche Post said airfreight revenues jump 8.4% to €1.2 billion and airfreight gross profit soared 9.4% to €233 million and revenues in forwarding business advanced 4.2% to €3.7 billion and operating profit surged 58.2% to €106 million from a year ago period.

Deutsche Post reaffirmed fiscal 2018 group profit of about €3.2 billion and €5 billion in 2020.

Hugo Boss AG slumped 3.1% to €61.98 after Germany-based luxury fashion apparel retailer said net sales in the nine-month period ending in September grew 1% from a year ago to €2.01 billion.

Net profit in the period plunged 9% to €169 million from €186 million in a year ago period and diluted earnings per share dropped to €2.45 from €2.69.

Hugo Boss said sales in China jumped 7% and profits in the Asia and Pacific region surged 37%.

The premium apparel retailer forecasted fiscal 2018 gross margin to drop between 50 basis points and 100 basis points and the apparel designer narrowed capital expenditure forecast to between €150 million and €170 million.

SGL Carbon SE surged 11.2% to €9.93 Germany-based carbon and graphite materials producer said revenues in the nine-month period ending in September surged 22.5% from a year ago to €786.3 million.

Net profit in the period soared to €47.7 million from €5.3 million in a year ago period and diluted earnings per share swung to €0.42 from diluted loss per share of €0.17.

SGL Carbon lifted fiscal 2018 revenues growth forecast of about 15% to €1 billion from the earlier estimate growth of 10% and net income to now increase to a mid- double-digit millions of euros.

WM Morrison Supermarkets Plc declined 5.2% to 241.22 pence after the U.K.-based supermarkets operator said sales in the thirteen-week period ending on November 4 jumped 5.6%.

Morrison said retail sales in the third-quarter increased 1.3%, wholesale sales soared 4.3% and comparable sales advanced 6%.

Zalando SE plunged 9.8% to €31.03 after Germany-based online fashion retailer reported revenues in the nine-month period ending in September soared 15.6% from a year ago to €3.7 billion.

Net profit in the period surged 14.3% to €1.6 billion from €1.4 billion in a year ago period and diluted loss per share swung to €0.02 from diluted earnings per share of €0.16.

The online fashion retailer said weak sales and profit were driven by long and hot summer and the delayed arrival of fall and winter season weighing on revenue growth and operating profit.

The retailer forecasted fiscal 2018 revenue growth in the lower end of 20% to 25% and operating profit between €150 million and €190 million.