Poor results hit European shares

EUROPEAN shares dipped yesterday as investors punished companies such as Zalando and Pandora that missed expectations, while caution prevailed ahead of US midterm elections and Brexit talks stalled again.

The pan-European STOXX 600 dipped 0.1pc.

While politics dented Italian stocks, company results dominated the wider market, with some poor showings hitting shares.

Zalando shares tumbled 8.4pc after Europe’s biggest online-only fashion retailer reported its slowest rate of sales growth since it was launched a decade ago, and recorded a loss due in part to unseasonably warm weather.

“The shift to mobile, fast fashion and beauty is driving down basket size, competition is putting pressure on gross margin, and Zalando’s build-out of distribution centres across Europe whilst transport costs are increasing has put upward pressure on the fulfilment cost ratio,” said Berenberg analysts.

Shares in Primark owner ABF advanced 3.1pc as the chain gained market share in the UK.

In Ireland, the Iseq Overall Index declined 0.7pc to 6,148.42.

Shares in hotel group Dalata were down 4.3pc at €5.57, while CRH was down 3pc, at €25.72.

First Derivatives advanced 6.1pc to €39.80 after it posted a 20pc rise in first-half pre-tax profit. Insulation-maker Kingspan gained 2.8pc, to €40.46.

The UK’s FTSE-100 fell 0.8pc. Germany’s DAX was flat and France’s CAC-40 was 0.3pc lower.