Results have subsided to a relative trickle - though what we have seen this week could provide some pointers for readers in the months ahead. That’s also true of some of this week’s news output which means we’re left wondering whether consumers have finally started to pull the reins as discretionary incomes tighten. Let’s face it, high street spending has proved to be far more resilient than many of us would have predicted…but we’re also seeing signs that raw material costs are starting to impact production costs in certain sectors.
That was certainly the case for paper/packaging manufacturer Mondi (MNDI) which was marked down heavily after it revealed that underlying performance for the financial year would be "modestly" below market expectations. The group’s margins have been put under pressure due to maintenance issues, but raw material inputs are now on the rise – click here to read our view on the emerging investor focus on costs.
The high street environment may be turning a little chillier, but you would never guess it by Ted Baker’s (TED) half-year figures. Improvements across a range of metrics were complemented by investments in infrastructure and international growth. Click here to find out what the IC’s retail expert Harriet Russell has to say about second half prospects.
Harriet has also been taking a look at 'the retail horror show' that is DFS Furniture (DFS). Rising inflation and wavering consumer confidence have put the squeeze on the sector, even though management believes the order intake since July has been “satisfactory”. Click here to see just how horrifying these full-year figures really are.
Does trading at Vertu Motors' (VTU) also signal that consumers are now feeling the pinch? With like-for-like volumes for new car sales down 14.7 per cent, the portents are far from favourable. Click here to find whether a lowly forward PE ratio of 7 is a viable entry point.
