It took two big names in American distribution to sound the alarm for the threat to be taken seriously… Yesterday, Target plunged 25% after warning of the risk of further deterioration in its margins after seeing its net profit halve in the first quarter due to rising costs. Costs, which primarily relate to fuel, freight and labor expenses, ” continue to grow almost daily and there is no indication at this time (…) that they will decrease over time ,” Target explained. With a strong and now measurable impact in the accounts: the operating margin will be only 6% this year, an impact of at least two points compared to the last forecasts of only three months ago. The day before, the world number one walmart had put forward the same reasons for announcing that its net profit per share objectives were no longer relevant. The title still lost nearly 7% on Wednesday, after falling more than 11% the day before. Other great victims of the day, Best Buy, Macy’s and Kohls.
Convinced by its two oracles, Wall Street took fright and the major indices went straight into the red yesterday, posting their biggest fall since June 2020. Dow Jones plunged 3.44% and the Nasdaq Composite 4.72%.
In turn, the Nikkei 225 lost 1.89% this morning and Europe opens in the red. In Paris, the Bedroom 40 drops 1.8% to 6,237.65 points.
Who’s next ?
” It is clear that transport costs are significant and have an impact on [certaines] of the biggest companiescan only note Kim Forrest, of Bokeh Capital, interviewed by CNBC. Now investors are scratching their heads, thinking, so who’s next? Above all, these comments give us clues as to what is going on in the minds of consumers.. »
” Consumers are challengedrebounds Megan Horneman, of Verdence Capital Advisors. Since late last year, they’ve been using their credit cards to meet rising food and energy prices, and it’s gotten even worse… It’s going to hurt big retailers and Walmart is l ‘one of them. »
The addition even saltier still at EDF
The statistical meetings of the day are not, a priori, likely to change the situation. In the United States, we expect the weekly jobless claims, the Philly Fed index for the Philadelphia region, the trend in sales of existing homes and the Conference Board’s leading indicator index. The ECB delivers the minutes of its last monetary policy meeting.
On the business side, Societe Generale (+0.3%) finalized the sale of its Russian subsidiary Rosbank and will spend a charge of 3.2 billion euros in the second quarter.
At the house of EDF (-2%), the decline in nuclear production will weigh more than expected on the gross operating surplus for this year. The negative effect is now estimated at 18.5 billion euros, against 14.5 billion previously.
Derichebourg at Elior’s table
Vallourec (-2.6%) announced further job cuts on the occasion of its first quarter figures. Gross operating surplus fell from 80 to 45 million euros in the space of a year, penalized by the temporary shutdown of the Pau Branco iron mine in Brazil, but would have reached 130 million without this non-recurring event. Billings increased by 30.5%, to 916 million euros. For the year as a whole, Vallourec expects a gross operating surplus ” significantly above that of the 2021 financial year “.
Derichebourg will acquire 14.7% of the capital ofElior, at a price of 5.65 euros per share, well above current levels, to bring its stake to 19.6%. If the action of the collective catering group is almost stable. Derichebourg, he lost 7%.