The Market Close – Moss Bros figures are dressed up as sales come in 2.8% higher

Today’s Closing Update

U.S. Shares traded lower after the release of the GOP’s highly anticipated tax reform plan.

European and U.K. Shares were little changed as gains in financial stocks and a weaker euro provided support, while fashion group H&M (HMb.ST) fell after disappointing results.

Economic activity in the US increased by slightly more than previously estimated in the second quarter, the US Commerce Department revealed in a report on Thursday. The report said gross domestic product jumped by 3.1% in the second quarter compared to the previously estimated 3.0% growth. Economists had expected the pace of GDP growth to be unrevised. The stronger than previously estimated GDP growth primarily reflected an upward revision to private inventory investment.

SSP Group said it expects to report a rise in revenue for its financial year to the end of September, with sales in its fourth quarter increasing. The company, which operates food and beverage outlets in travel locations, said total revenue in the period from the beginning of July to end of September is expected to have risen by around 15% at constant currency with net contract gains of around 8.5%. The weak pound boosted sales at actual exchange rates, and reported revenue is expected to show an around 18% rise for the same period.

Shore Capital posted a 2.2% rise in interim pre-tax profit as revenue grow, partly thanks to a solid performance from its capital markets division. In the six months to 30th June, pre-tax profit rose to £2.5m from 2.4m the year before, on revenues of £20.3m, up 13%. Meanwhile, basic earnings per share were up 3.6% to 6.7p. Revenues from the capital markets division rose 13% to £14.8m, while pre-tax profit grew 12.7% to £3.4m as it participated in three IPOs and 10 secondary fundraisings. In addition, it won eight new corporate clients, including Non-Standard Finance, Oxford Biodynamics and UP Global Sourcing Holdings.

Moss Bros grew group like-for-like sales by 2.8% in the first half of the year. Like-for-like retail sales, including e-commerce, were up 5.1% between 29 January 2017 and 29 July 2017. Total group revenue, excluding VAT, was up 4.3% on the previous year to £66.6m. E-commerce retail sales for the first half grew 14.5% on the prior year and now represent 11.2% of total sales.

Oil prices rose, spurred by tension around northern Iraq following the Kurdistan region’s vote in favor of independence in a referendum.

Gold touched a six-week low after the dollar and U.S. bond yields rose on proposed U.S. tax reforms and strong economic data that supported the case for another U.S. interest rate hike this year.