The Worst Profit Warning I Have Ever Seen

The Week: Morningstar columnist Rodney Hobson looks at Sosandar's profit warning, WH Smith's global ambitions, and Sainsbury's after Mike Coupe

Rodney Hobson 24 January, 2020 | 9:28AM

Stock market chart

Regular readers will know that I have a pathological hatred of hidden profit warnings but the disgraceful example from online women’s fashion retailer Sosandar (SOS) is the worst I have seen in 35 years of covering London stock market announcements.

The trading update boasted of a record quarter with sales set to beat expectations. Shareholders were treated to several paragraphs and a load of bullet points extolling the wonderful sales figures, including the fact that sales in the last three months of 2019 were greater than for the whole of the previous six months.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASOS PLC3,143.04 GBX-0.22
Sainsbury (J) PLC202.00 GBX-2.37
Sosandar PLC17.00 GBX-0.73
WH Smith PLC2,200.00 GBX-3.51

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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