Asos Rises as Burberry Falls, Mining Stocks Boost FTSE 100
Strong first half results at Asos Plc (ASC) have seen the company’s share price jump by 8.7% today, with sales growing by 25% in the UK and 18% internationally in the 6 months leading up to 29th of Feb 2016. Revenue also grew by 21% to £667.3m, while Gross profit and margins also showed strong growth. Pre-tax profit was up by 18% to £21.2m.
All of this good news is surprising in some ways given all of the profit warnings released by asos over the past couple of years. With a new Chief Executive now in place at the firm, however, it seems as though things are back on the up, with strong international growth encouraging investors to have confidence in the stock once again.
Burberry Stock Falls after Rival LVMH Results
Today hasn’t been so pleasant for Burberry (BRBY), though, as the stock had a turbulent ride today, dropping by around 3% to a low of 1256p before rebounding at the end of the trading session to close up 0.3% at 1300.91p. While Burberry has been staging something of a revival in 2016, weak growth from rival luxury retailer LVMH – which owns Louis Vuitton handbags and TAG Heuer watches – spooked investors. LVMH reported first-quarter organic sales up only 3%, which was below analyst expectations.
FTSE 100 Climbs Boosted by Mining Stocks
Elsewhere, on the FTSE 100 today we had rising mining stocks with Anglo American (AAL), Glencore (GLEN), BHP Billiton (BLT) and Rio Tinto PLC (RIO) all being amongst the top climbers, as the mining sector index rose 2.3 percent – making it the top sectoral gainer. This rise was partly due to steady copper prices and also down to more encouraging economic signals from China. Anglo American PLC also benefited from further improvements in rough diamond sales from De Beers, making it today’s best performer on the FTSE 100 Index, up 9.16% approaching the end of the trading period.
After spending most of the day hovering in and out of negative territory then, the FTSE 100 finally closed the day up 0.68% (+42.27) at 6242.39.