0801 GMT - ASOS' update shows that management is putting significant focus on protecting profitability and cash flow despite a revenue fall in the first four months of FY 2023, Berenberg analysts say in a note. These decisions are expected to start giving results over the second half, while the online fashion retailer remains in a robust balance-sheet position, they note. "We reduce our revenue estimates by 3%-5% over the forecast horizon, make only minor amendments to our EBIT margin forecasts and note that our outer-year forecasts would look conservative should the planned profit improvement over 2H materialize," the analysts add. (michael.susin@wsj.com)
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Marks & Spencer Beats Expectations With 3Q Sales
0800 GMT - Marks & Spencer Group's third-quarter sales beat expectations after progress at its food business, and the clothing and international businesses are benefiting from a better offering and execution, RBC Capital Markets' analysts Richard Chamberlain and Manjari Dhar say in a research note. The U.K. retailer's food business has been boosted by improved value for money perception, range development and its JV with Ocado Retail, they note. M&S did though caution on macroeconomic headwinds and underlying cost pressures, they say. "We think M&S' valuation is moderate but with higher than average earnings risk, given its fairly mature position in the U.K.," the analysts say. RBC has a sector perform rating on the stock with a 125 pence target price.(kyle.morris@dowjones.com)
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Tesco's Strong Christmas Performance Likely to Support Shares
0746 GMT - Tesco reported a strong Christmas performance and the confident signs after it backed full-year guidance are expected to be supportive to the shares, Citi analysts say in a note. The grocer's like-for-like sales increase of 7.2% in the U.K. suggests grocery growth in excess of 8%, indicating a robust peak trading period, they add. "Notwithstanding the prevailing macro uncertainties, we continue to see value in the shares," they say. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
01-12-23 0426ET
