Financial Journal Business & Finance News
London: WH Smith sales flat to a bit lower
WH Smith said sales in the 20 weeks to January 20 were flat on-year, while like-for-like sales were down 1%. Travel sales rose 7%, with like-for-like sales up 3%. On the High Street, sales were down 5%, with like-for-like sales down 4%.
Chief executive Stephen Clarke said the results were delivered against a "very successful period last year". "Our travel business now accounts for almost two thirds of the group's annual profit and we continue to deliver strong sales growth across all our key channels," Clarke said.
"This was driven by ongoing investment in the business and continued growth in passenger numbers in our airport stores over the Christmas period. Our recently opened new concept store in Gatwick South has performed particularly well and is ahead of plan."
"High Street sales were in line with expectations. Our stationery and seasonal ranges, including cards and wrap, performed well with good sales growth versus last year. Book sales were more challenging due to the decline in spoof humour titles and no new, big publishing trends."
"Looking ahead, while there is some uncertainty in the broader economic environment, we remain confident that the group is well positioned for the year ahead as we continue to focus on profitable growth, cash generation and investing in new opportunities
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
Special Counsel Robert Mueller demands Donald Trump to answer questions
Special Counsel Robert Mueller has indicated to lawyers for President Donald Trump that his office will seek answers directly from the president on the circumstances around the firings of former national security adviser Michael Flynn and former FBI Director James Comey and in general the Russian investigation.
For the last several weeks, the US president's lawyers have been researching and crafting arguments on how to respond to a formal request from Mueller to interview the president.
Options for the president's legal team are in written responses or an in-person video interview like former US-President Bill Clinton experienced in the Monica Lewinsky case.
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
Ahold Delhaize reports solid sales growth in the fourth quarter
• Net sales of €15.8 billion, up 1.6% at constant exchange rates
• Pro forma net sales of €15.8 billion, up 2.5% at constant exchange rates
• Comparable sales up 0.6% at Ahold USA and 1.5% at Delhaize America
• Strong sales performance in the Netherlands with comparable sales up 6.0%
• Online net consumer sales up 23.2% at constant exchange rates in the fourth quarter and reached €2.8 billion for the full year 2017
• Expected full year 2017 pro forma underlying operating margin of 3.9%, in line with guidance
• Expected full year 2017 free cash flow to be significantly ahead of expectations
Ahold Delhaize today announced consolidated net sales of €15.8 billion for the fourth quarter of 2017, an increase of 1.6% at constant exchange rates compared to the fourth quarter of last year.
Overall the business delivered a solid performance in the fourth quarter, resulting in a net sales growth of 2.5% on a pro forma basis, at constant exchange rates. For the full year 2017, pro forma net sales reached €62.7 billion, up 1.7% at constant exchange rates.
Sales performance at Ahold USA was in line with the previous quarter, with comparable sales growth of 0.6% (excluding gasoline), and slightly improved after adjusting for weather and holiday shifts compared to the previous quarter. Market share is expected to be stable compared to last year. Price inflation at 1.1% was broadly in line with the previous quarter. Giant Carlisle reported a strong quarter, with new Beer & Wine locations driving increased transactions.
At Delhaize America, comparable sales grew by 1.5%, with both Food Lion and Hannaford reporting positive comparable sales growth, and market share is expected to increase compared to last year. Food Lion continued to benefit from the roll-out of the "Easy, Fresh and Affordable" program in the Charlotte market last year and the Richmond and Greensboro markets this year. Price inflation was at 0.7%, broadly similar to the previous quarter.
The Netherlands had a strong performance with 6.0% comparable sales growth, compared to an outstanding quarter last year, with a positive calendar impact at year end 2017. Albert Heijn ran successful commercial campaigns and had a very strong holiday season, both in the supermarkets and online, increasing its full year market share compared to last year. Price inflation was 2.8%, slightly higher than the previous quarter. Bol.com reported 29.8% growth in net consumer sales this quarter, resulting in €1.6 billion net consumer sales for 2017.
In Belgium, comparable sales for the quarter were flat versus last year yet improved adjusted for the calendar impact. Affiliates and Luxembourg continued their solid performance and full year market share is expected to be broadly in line with last year. Price inflation in Belgium was 0.9%, broadly in line with the previous quarter.
In Central and Southeastern Europe, comparable sales growth was 0.3% (excluding gasoline). Strong sales performance in the region was offset by negative sales growth in Greece where the sales performance reflected a normalization of market circumstances since the second quarter this year.
Outlook
For the full year 2017, we expect pro forma underlying operating margin for the group to be 3.9%, in line with guidance. Free cash flow delivery is expected to be significantly ahead of expectations, due to improved working capital performance, capital expenditure slightly lower than forecast, and higher dividends from joint ventures.
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
Flash: Brent: $69,85 (-0,04%), AEX: 570,6 (-0,04%), DJI: 26.210 (-0.01%), EUR>(+0,01%)>US-Dollar: $1.2307, EUR>(-0,10%) Pou/nd>£0.8775, Pound>(+0,09%) US-Dollar $1,4023, EUR>(-0,09%)>JPY: Y135,42
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
Bundesbank: German economy still growing at a brisk pace
Germany’s economy is continuing to expand at an exceptionally brisk underlying pace, the Bundesbank’s experts write in the January 2018 edition of the Bank’s Monthly Report.
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
GrandVision reports preliminary revenu growth at constant exchange rates of 8.1% in 4Q17 and 5.6% in FY17
GrandVision NV (EURONEXT: GVNV) publishes its preliminary and unaudited 4Q and FY17 revenue and comparable growth update.
Revenue growth at constant exchange rates was 5.6% for the full year 2017 with organic growth of 3.5%. The first growth pillar, comparable store growth, reached 1.8% and was 2.3% when adjusted for the effect of fewer selling days in 2017. The continued network expansion, GrandVision’s second pillar of growth, reached its highest contribution ever in 2017 with a contribution to growth of 1.7%. In total, more than 250 stores were added during 2017. The third growth pillar, acquisitions, added 2.1% to revenue growth including Visilab in Switzerland and Tesco Opticians in the UK. As a result, the total store network expanded to 7,001 at the end of the year.
In the fourth quarter, revenue growth at constant exchange rates was 8.1%. Organic growth was 1.6% despite the slow comparable growth of -0.8%, caused, as previously announced in the 3Q17 Trading Update, by fewer selling days compared to the previous year related to the timing of the 2017 Christmas holidays. The overall influence of those factors was -1.3% and felt strongest in the G4 segment. The acquisitions of Visilab in the Other Europe segment and Tesco Opticians in the G4 segment started to contribute to the growth during 4Q17.
In the G4 segment, revenue and organic growth were positive also in 4Q17 despite the -2.0% effect of fewer selling days in the segment, and the impact of the 2017 regulatory changes in France. As reimbursements were no longer linked to the calendar year, customers no longer rushed to pick up their orders by year-end. The UK business contributed positively through mid-single digit organic growth and first time consolidation of Tesco Opticians as of 4 December 2017.
In the Other Europe segment, revenue at constant exchange rates grew strongly in the fourth quarter. Organic growth in Eastern Europe continued to be strong with high single digits also in 4Q17, and Visilab in Switzerland as of October added approximately 20% to revenue. However, the 4Q17 comparable growth in the segment was slightly negative against a high prior year comparable of 7.0%, as the performance, especially across Northern and Southern Europe was affected by the calendar effect in a number of countries.
In the Americas & Asia segment, organic growth was above 10% in 4Q17. Both the continued network expansion as well as the comparable growth which was in the low to mid-single digits contributed positively to this growth. The segment’s underlying performance compensated for the effects of both the unfavorable selling days as well as the temporary downturn of tourism in Mexico in the aftermath of the September earthquake and hurricanes.
GrandVision is expecting slower but still positive adjusted EBITDA growth in the fourth quarter despite the adverse calendar effect on revenue.
The Financial Journal GLOBAL, founded in 1967/2017, 50 years and ongoing.
New York London Amsterdam Antwerp Tokyo
THE FINANCIAL JOURNAL GLOBAL
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
SPECIAL OFFER Subscription Mailbox Member - Price Drop: 12 months €69 (Automatic Expiration)
Jerome Powell confirmed as next US Federal Reserve chair; US Fed Governor to replace Janet Yellen
The US Senate has confirmed Jay Powell as the next Federal Reserve chair.
Powell, 64, has been a Fed governor for five years and helped shape policy under Janet Yellen, who will leave after a single term as the first woman to lead the world's most influential central bank. Powell has said his leadership would represent continuity with his predecessors.
Despite objections from some Democrats, Powell easily won confirmation on Tuesday by a vote of 84-13 with strong bipartisan support.
Nearly 40 Democrats -- with Charles Schumer, Sherrod Brown and Ron Wyden among them -- crossed the aisle to support him.