Today’s news in brief-21/11/23

AO World has reported a significant turnaround in its financials for the six months ending September 30. The company posted a profit before tax of £13m, marking a notable improvement from the previous year’s loss of £12m. AO World has adjusted its profit guidance for the fiscal year, now anticipating a profit before tax between £28m and £33m. Despite a drop in revenue from £546m to £482m, the company attributed this to strategic measures such as removing unprofitable sales and adding delivery fees. Other cost reductions include lower warehousing costs and decreased admin expenses, demonstrating AO World’s focus on profitability. Founder and CEO John Roberts expressed satisfaction with the progress made, emphasising the company’s commitment to a strategic shift towards profit and cash generation.

Marks & Spencer (M&S) has been granted permission by the High Court to seek a Judicial Review for the redevelopment of its Marble Arch store. This follows the rejection of planning permission by Secretary of State Michael Gove, citing concerns related to heritage and the environment. M&S contends that Gove misinterpreted planning policy in his decision. Stuart Machin, CEO of M&S, expressed satisfaction with the Court’s recognition of the merits of their legal challenge. M&S aims to overturn the government’s decision, emphasising the importance of their Marble Arch proposal for retail-led regeneration on Oxford Street. Machin pledged to pursue all necessary steps to secure a better future for the Marble Arch site, emphasising their commitment to local customers and the community.

Data from MRI Software reveals a marginal 0.4% increase in footfall across all retail destinations in the week leading up to Black Friday. High streets recorded the strongest performance with a 1% rise, while shopping centres saw a modest 0.6% increase. In contrast, retail parks experienced a 1.3% decline. Adverse weather conditions and consumer anticipation for Black Friday potentially impacted overall footfall, resulting in a 1.2% drop compared to the same week last year. Despite a challenging start to the week, footfall steadily improved from Wednesday onwards, particularly in high streets, showcasing a 6.7% average rise. While the marginal uplift failed to improve year-on-year performance, there was optimism for high streets, with a slight improvement in the gap from 2019 levels.

Brand management company Iconix International Inc. has acquired a majority stake in British streetwear brand Hoodrich, partnering with founder Jay Williams. The deal, based on a shared vision, aims to propel Hoodrich’s growth globally. Batra Group will handle business operations, and JD Sports will serve as a key retail partner. Hoodrich, founded in 2014, has gained prominence in over 1000 retail outlets across 24 countries. Iconix plans to leverage its network to expand Hoodrich into new markets and product categories. The brand’s headquarters will remain in Birmingham and Watford. Iconix CEO Bob Galvin expressed excitement about growing Hoodrich globally, emphasising the brand’s potential in the lifestyle streetwear market. Founder Jay Williams looks forward to the partnership, anticipating significant support for Hoodrich’s international expansion.