Entain (LON:ENT), a leading UK gambling group, has seen a significant fall in profits and is being put down to a tightening of gambling regulations and some adverse sporting events. The share price was sent tumbling over 13% down following the announcement, and also caused other similar firms including Ladbrokes (LON:LCL) and Coral (LON:CRU) to see a dip. Whilst gambling reforms might be something that are seen as an improvement to society, there is always a pay-off for shareholders invested in the business.
The fizzy drinks maker AG Barr (LON:BAG) announced strong profits yesterday, with its flagship Scottish brand Irn-Bru clearly still retaining a strong demand, despite the wet summer experienced in the UK. Investors were buoyed by the results, as well as the hope that a can of pop may be an affordable luxury in tougher times, which caused the share price to rise by just over 1%.
Data released by the Fed last week revealed how peoples’ savings are being impacted across the US. It may come as no surprise that most individuals had less saved in June than they did in March 2020. However, the richest 20% of the population actually had more saved than pre Covid-19, suggesting that there is a growing split in spending habits. With this growing pool of wealth, it’s the luxury stocks that will win, whilst consumer stocks (similar to restaurants), may feel the pinch once again.
Sources: AJ Bell, Financial Times, Bloomberg, IG, Reuters, Yahoo Finance