Goldman Sachs (GS)
Goldman Sachs is set to open lower in New York on Wednesday after it posted its lowest annual profits in four years. Net income at the bank fell 24% in 2023 to $8.5bn (£6.7bn), while a decline in investment banking was compounded by losses caused by its shift away from retail banking.
However, its fourth-quarter results still came in better than analysts had expected, with the bank’s asset and wealth management and equities trading businesses driving gains. Analysts polled by Bloomberg had forecast quarterly net income of about $1.5bn.
“This was a year of execution for Goldman Sachs,” said CEO and chairman David Solomon, in a release. “With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024.”
It came as Morgan Stanley (MS) also reported an 18% drop in full-year net income to $9.1bn. Profits at the bank’s investment banking and trading division fell about a third while revenue from wealth management was roughly flat from a year earlier.
Mulberry (MUL.L)
Shares in handbag maker Mulberry were in fashion on Wednesday, rising as much as 3.5%, despite revealing a drop in its Christmas quarter sales.
As shoppers reined in their spending on luxury items, the retailer saw group revenues drop 8.4% in the 13 weeks to 30 December, with retail sales down 1.5%.
Trading was particularly weak in the UK, with sales down 4% in the quarter, as Mulberry said the government’s move to axe VAT-free shopping continues to take its toll.
Full-year results are also set to be impacted by the additional operational costs of new stores in Sweden and Australia, as well as ongoing investments.
Read more: LIVE: FTSE and European stocks slump after shock rise in UK inflation
At Mulberry, chief executive Thierry Andretta said: “In the run up to Christmas, the macro-economic environment continued to impact consumer spending in the luxury retail sector, which Mulberry was not immune from. Our international sales remained positive, supported by our strategy to bring in-house ownership of overseas stores.”
He added: “In the UK, we continue to believe the lack of VAT-free shopping is impacting the retail landscape, as well as the hospitality, leisure and tourism sectors. Looking ahead, we are continuing to execute our plans and remain confident that our investments will underpin future sustainable growth.”
It comes after fashion house Burberry last week warned on profits after seeing a slowdown in demand worsen in December.
Regulators have asked Wizz Air to pay out more than £1.2m to passengers in a row over cancelled flights and delays.
The Civil Aviation Authority (CAA) took action against the low-cost airline amid concerns over the high volume complaints, and its failure to meet passenger rights obligations.
More than 25,000 claims made by passengers were re-examined by the regulator, resulting in additional payments made in around 6,000 cases.
The Hungarian airline has also improved the way it handles claims, such as introducing an automated refund process.
Shares fell as much as 4% on the day in London.
“This is good news for passengers and our concerns have been validated by the outcome of our actions,” Paul Smith, consumer director at the UK Civil Aviation Authority, said.
“While we welcome the steps taken by Wizz Air after falling short in its treatment of disrupted passengers, airlines should routinely look after passengers and uphold their rights when flights are delayed and cancelled.
“Passengers have every right to expect their claims to be resolved quickly, efficiently and in line with the regulations. These outcomes will now provide Wizz Air’s passengers with a better experience.”
888 Holdings (888.L)
The owner of William Hill has revealed a fall in annual sales amid a clampdown on safe gambling in Britain. Shares slumped as much a 7% on the day on the back of the news.
The company revealed an 8% decline in total sales last year to £1.7bn, down from £1.9bn generated the previous year.
UK&I online revenue fell 8% to £658m, retail revenue rose 3% to £535m, and international revenue dropped 16% to £517m.
It said that sales were impacted by the introduction of safer gambling measures in the UK, designed to protect the vulnerable and prevent gambling addictions, and changing how it advertises to customers.
The group also added that extra investment would mean 2024 adjusted EBITDA would be at the low end of the consensus range of between £340m and £397m.
888 is now looking at hitting £30m in savings, which includes closing its office in Bulgaria and making redundancies overseas.
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