Sainsbury’s shares fall on results

Supermarket chain Sainsbury’s have seen shares fall this morning, after its CEO warned that trading conditions in the “fiercely competitive supermarket sector” would remain tough.

Underlying profits fell to £587 million for the year to 12 March, down from £681 million in the previous year.

Pre-tax profits for the year were £548 million, better than expected after last year’s £72 million loss.

“The market is competitive, and it will remain so for the foreseeable future,” said Chief Executive Mike Coupe on Wednesday. “We believe we have the right strategy in place.”

The supermarket was hit by its own price cuts as well as a decline in food prices in general.

Shares (LON:SBRY) are currently trading down 3.99 percent at 374.30 (0907GMT).

Next issues profit warning

Clothing retailer Next has issued its third downgrade in five months, warning that sales could fall as much as 3.5 percent by the end of the year.

The poor performance of the last six weeks may be indicative of weaker underlying demand for clothing and a potentially wider slow-down in consumer spending,” Next said in its statement on Wednesday.

The company cited tough weather conditions in comparison to last year as the main reason for the fall.

However, investors have reacted well to the news, with shares in Next (LON:NXT) trading up 2.45 percent at 5,100 (0915GMT).

Imperial Brands meet outlook expectations

British tobacco company Imperial Brands (LON:IMB) saw a fall in first-half sales, but managed to maintain full-year outlook expectations.

Imperial, who make Davidoff and Gauloises cigarettes, saw sales of 133.9 billion cigarettes in the six months to 31 March, below expectations of 136 billion. Tobacco net revenue was £3.4 billion. However, operating profit came in above analysts expectations at £1.64 billion.

The Group’s results come just as major cigarette companies lose a battle in the EU high court against plain-packaging cigarettes, which may well be introduced next month.

04/05/2016