Europe Movers: ASOS, Aston Martin, Next Plc, Skansa, Wolters Kluwer

Inga Muller
01 Nov, 2023
Frankfurt

European markets reacted to the latest batch of earnings, and the euro edged lower for the second day in a row.

The DAX index increased 0.4% to 14,874.72, the CAC-40 index advanced 0.4% to 6,912.75, and the FTSE 100 index edged up 0.4% to 7,357.12.

The yield on 10-yetrar German bonds increased to 2.81%, French bonds traded higher to 3.41%, the UK gilts edged up to 4.54%, and Italian bonds inched higher to 4.75%.

Wolters Kluwer NV declined 3.5% to €116.90 after the Netherlands-based trade publishing firm reported adjusted operating profit for the first nine months declined 2% in constant currencies.

Skanska AB plunged 11.5% to 148.80 Swedish kronor after the Swedish construction firm reported lower-than-expected third-quarter profit, reflecting a weak commercial real estate market.

ASOS Plc dropped 10.5% to 352.10 pence after the struggling online fashion retailer reported an annual loss of £300 million.

ASOS stock dropped to the level last seen in 2009.

The embattled fashion retailer said annual revenue declined 11% to £3.5 billion from £3.9 billion, after-tax losses expanded to £223.1 million from £30.8 million, and diluted earnings per share fell to 213 pence from 30.9 pence a year ago.

Active customers declined 9% to 23.3 million, but average transaction value increased 7% to £40.3 million from £37.6 million, and average order frequency edged lower to 3.6 from 3.8 a year ago.

The company accelerated its turnaround efforts, adjusted from pandemic boom to post-pandemic bust, and aligned its corporate structure to reflect weaker demand from repeat customers.

Premier customers declined 11%, reflecting higher subscription prices and higher thresholds for free delivery.

Aston Martin Lagonda Global Holdings PLC dropped 11% to 194.60 pence after the luxury vehicle maker reported a wider-than-expected loss in the third quarter.

The company also lowered its 2023 volume outlook for the DB12 model, but total vehicle sales in the quarter rose 4% to 1,444 from 1,384 a year ago.

Revenue increased 15% to £362.1 million from £315.5 million, and net loss shrank to £118.0 million from £228.2 million.

In the nine-month period, the wholesale average selling price across all models increased to £219,000 from £195,000 a year ago.

Next Plc increased 4.3% to 7,182.0 pence after the U.K.-based apparel retailer lifted its profit outlook for the fourth time this year.

Total product full-price sales increased 3.8% in the third quarter and rose 3.2% in the nine-month period ending in September.

The company said 2023 full-price sales are estimated to increase by 3.1% to £4.74 billion, compared to the previous estimate of a 2.6% increase to £4.72 billion.

The fashion retailer estimated a 2023 pre-tax profit of £885 million, an increase of 1.7% compared to the previous estimate of a 0.5% increase to £875 million.