BUSINESS LIVE: M&S and Tesco increase forecasts for Christmas sales; The foundation will be lame by the end of 2021; U.S. inflation is at its highest level in four decades
Marks & Spencer raised their earnings outlook after reporting a strong Christmas figure, with retailers now expecting at least £ 500m in full pre-tax profit.
Tesco also raised its earnings forecast in response to the growth in Christmas sales, despite the fact that it was difficult to compare with 2020, when costs increased due to the Covid-19 blockade.
Online fashion retailer ASOS has reiterated its already declining outlook after supply chain constraints and volatile demand limited sales growth during the four-month to December 31 trading period.
After growing 22 percent for the year to the end of August, overall sales growth was 5 percent and gross margin fell to 43 percent due to the need to discount goods and increase shipping costs.
The cost of living in the U.S. is growing at the fastest rate in 40 years, with consumer price inflation reaching 7 percent in December.
Rising prices in the U.S. are a concern for other countries, including the United Kingdom, which is closely linked to the world’s largest economy.
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M&S enjoyed a strong Christmas sale as it boosted its full-year earnings outlook