London’s blue chip index bounced back in early trading after closing 36.24 points lower on Tuesday over HSBC's (HSBA) turnaround plans. The FTSE 100 trades 13.12 points, or 0.20%, higher at 6,766 on Wednesday thanks to better than expected results from unloved supermarkets giant Sainsbury's (SBRY).
The company gathers up 2.4% at 254.9p, despite reporting a 2.1% decline in first quarter like-for-like sales amid cut-throat competition and sharp food price deflation. The decline isn't as bad as consensus feared, and CEO Mike Coupe flags encouraging early trends delivered by his turnaround strategy.
Pure-play online fashion retailer Boohoo.com (BOO:AIM) bounces 7.23% higher to 27.88p on a better-than-expected first quarter trading statement. The running Play of the Week's growth strategy is back on track following a January profit warning, with sales momentum picking up in the UK, the key near-term growth driver.
Budget footwear purveyor Shoe Zone (SHOE), also recovering from an earnings alert, is back in fashion this morning. The shares rise 8.6% to 177p on reassuring half-year results, including news of positive progress with online and store portfolio initiatives, as well as a soothing current trading statement. We explained why the Shoe Zone sell-off looked overdone here in May.
Car competition runner Best of the Best (BOTB) surges 11.5% to 146p after reporting pre-tax profit of £0.81 million for the year to 30 April, up from £0.45 million the previous year. Revenue is up 26% to £8.8 million as the business benefits from its move to a weekly competition, which has boosted new customer acquisition.
Tiny entertainment marketing play Reach4entertainment (R4E:AIM) gains 63% to 2.32p as it agrees a deal with Allied Irish Banks to restructure and pay off a £14.8 million loan facility. The £1.7 million cap hopes to replace it with a cheaper facility.
LED lighting company Dialight (DIA) collapses 36% to 472.13p after warning that profits for 2015 will massively miss expectations. The market had been expecting £22 million of pre-tax profit on £195 million revenues, but we can expect those numbers to be substantially lowered.