The first Morning Roundup of 2023 begins with trading updates from Next, Greggs and B&M. Investors have been heavily waiting to assess how retail stocks performed over the Christmas periods, with some analysts expecting potential raises to guidance.
- Next announced in its trading statement that sales in the Christmas period were better than expected.
- In the nine weeks to 30 December full price sales were up 4.8% versus the prior year, and was £66m better than its previous guidance for the period.
- Therefore, Next increased their full year profit before tax guidance by £20m to £860m, up 4.5% year-on-year.
- The retailer did state that they remain cautious in its outlook for the year ahead and its initial guidance expects full price sales to be down 1.5%.
- Greggs announced its Q4 trading update on Thursday, with total sales for the FY22 up 23% to £1.5b.
- Like-for-like sales were up 18.2% in Q4 and 17.8% in FY22.
- The group anticipates full year outcome to be in line with its previous expectations, remaining confident in delivering another year of good progress in 2023.
- Greggs also added that is plant-based foods are “contributing more significantly” to Greggs’ range.
- B&M provided its Q3 trading update on Thursday, announcing revenue grew 12.3% year-on-year to £1.57bn.
- Total B&M UK fascia revenue was up 10.3% and one year like-for-like revenue increased 6.4%.
- The variety retailer also performed well in France, with revenue up 24.9% YoY and saw momentum n Heron Foods, with revenue up 22.5%.
- As a result, FY23 group adjusted EBITDA is now expected to be in the range of £560m to £580m, ahead of previous estimates of £557m.