Swiss banking giant UBS said on Thursday its 2023 net profit was slightly lower than previously stated after the estimated fair value of its Credit Suisse acquisition was reduced.
UBS said that its 2023 net profit was $27.8bn (£22.05bn), down from $29bn previously reported.
In its annual report, UBS warned that there is a risk that “a material error” may not be detected by UBS and could result in a material misstatement to Credit Suisse’s reported financial results which are now merged with UBS’s.
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“This review is ongoing, and UBS expects to adopt and implement further controls and procedures following the completion of such review and discussions with regulators,” it added.
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Meanwhile, UBS CEO Sergio Ermotti earned 14.4m Swiss francs (£12.61m/$15.9m) in 2023 after his surprise return at the helm of the Swiss banking giant. That makes him the best-paid European bank boss.
Swedish retailer H&M surged by 15% after significantly beating analyst consensus expectations for its fiscal first quarter operating profit.
H&M posted a quarterly operating profit of 2.08bn Swedish crowns (£155m/$196m), up from SKr725m a year ago, and above the SKr1.43bn expected by analysts in an LSEG poll.
H&M’s operating margin was 3.9% in the first quarter, more than double what it was a year earlier.
Net sales in the period were down 2% to SKr5.4bn (€4.7bn) while revenue from March 1 to 25 was up 2% in local currencies.
H&M said it plans to open around 100 stores, mainly in growth markets, and close 160 stores in more established markets.
Chinese smartphone maker Xiaomi is set to launch its first electric vehicle (EV) and begin taking orders this Thursday.
The tech company will start taking orders for the SU7, a sporty four-door sedan, following a launch event with founder Lei Jun in Beijing on Thursday evening.
Xiaomi’s CEO said on Monday that his firm’s first electric vehicle aims to be the “best looking, easiest to drive and smartest car” priced below 500,000 yuan ($69,424).
The firm is hoping that the SU7’s shared operating system with its phones, laptops and other devices will appeal to existing customers. Xiaomi is the third-largest seller of smartphones worldwide.
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The move will see the technology giant taking on rivals like Tesla (TSLA) and BYD (1211.HK).
The combined share of EVs and hybrids in China’s auto sales is likely to reach 42% to 45% this year, up from 36% in 2023, according to Fitch Ratings.
JD Sports (JD.L)
UK retailer JD Sports Fashion warned of “challenging” trading conditions after a weak January resulted in flat like-for-like fourth-quarter sales.
In a trading update for the 53 weeks to 3 February 2024, the sportswear chain said that profit before tax and adjusted items is expected to be in line with the £915-935m guided range.
During the period, total sales grew by 3.6% to £10.5bn, while gross margins were 47.3%. Like-for-like sales in Britain and Ireland fell 3.2% in the fourth quarter, a drop it blamed on a higher proportion of clothing sales in its mix than in other regions and a decision not to discount as much as some online rivals.
The fourth quarter result meant that JD Sports’ like-for-like sales in the year to 3 February were up 4.2% with organic sales growth of 8.4%.
Régis Schultz, chief executive of JD Sports Fashion, said: “In our FY24 financial year, we outperformed the sportswear market, reflecting the strength of our business.
“We achieved like-for-like sales growth of over 4%, organic growth of over 8% and our athleisure fascias achieved organic growth of over 10%.
“We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG.”
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