Shares in Shoe Zone PLC (LON:SHOE) advanced 7% today as the shoe retailer pleased the market with a positive update on trading.
In a short but sweet statement the group said that since its last update on July 26th, 2022, trading has continued to exceed expectations due to continued strong demand for summer and back to school products throughout August.
The company also continues to benefit from the margin improvements as outlined in recent trading updates, it added.
Shoe Zone said it now expects adjusted profit before tax for the financial year ending 2 October 2022 to be not less than £10.5mln.
Chinese concerns weigh on ECO Animal Health
Shares in Eco Animal Health Group PLC (AIM:EAH) slipped by 10.70% today as the group reported a sharp fall in sales and cautioned that the Chinese market would remain subdued for a while.
The company announced a 22% fall in sales to £82.2mln and a decrease in EBITDA to £6.4mln from £21.3mln in 2021.
Sales in China and Japan declined significantly to £28.4mln (2021: £58.9mln) although sales in the rest of the world improved to £53.8mln from £46.7mln.
David Hallas, chief executive officer also warned that he expects “that China will remain subdued for another quarter or two but the recent improvement in pork to feed price ratio provides the foundation for a stronger end to the financial year.”
Analysts at Peel Hunt lowered their price target to 270p from 350p and cut its full year 2023 pre-tax profit forecast by 40% to £5.6mln from £9.4mln.
It remained positive on the group, reiterating a buy rating adding “The recent increase in pricing and lower sow herd should ensure a materially better market, but this will take time to flow through to demand.”