Today’s news in brief-30/11/23

Castore has successfully secured a £145m investment in a funding round led by Raine Partners. This investment aims to further disrupt the premium sportswear market and expand the brand’s global reach. Castore plans to develop its product range, enhance infrastructure, and invest in its people. The company, on track for record revenues and profits in 2023, aims to become the leading sports and athleisure brand in the UK. Castore’s founders expressed confidence in the value the investors bring and highlighted the potential to compete with established players in the global sports apparel market.

Jollyes has reported a substantial increase in sales, reaching £70m for the 26 weeks ending November 27, 2023, marking a 33% growth compared to the same period last year. Like-for-like sales also rose to 19%, up from 17% in the previous fiscal year. The company expanded its store count by eight, reaching a total of 98 stores. Over the last two years, Jollyes has added 31 stores, a growth of over 40%. The CEO, Joe Wykes, expressed satisfaction with the performance, emphasising the need to guard against complacency and invest in new partnerships for sustained momentum.

Mulberry experienced a 7% increase in revenues, reaching £69.7m for the half-year ending September 30, 2023. However, operating losses surged by 79% to £10.4m, with an underlying loss before tax of £12.3m. The UK retail sector saw a 6% increase to £36.2m, while international retail sales jumped 34% to £23.5m. Mulberry highlighted its shift from wholesale to retail and expressed confidence in capitalising on the festive trading period. CEO Thierry Andretta emphasised continued investments for long-term growth, particularly in transforming international businesses to a direct-to-consumer model.

EG Group reported an 18% decline in EBITDA to $345m in Q3 2023. The decrease was attributed to lower fuel volumes, a competitive environment, and comparisons with exceptional conditions in Q3 2022. Despite this, the group continued its deleveraging strategy, repaying debt after the sale of the majority of its UK & Ireland business to Asda. Grocery and merchandise gross profit increased, and the group aims to enhance its electric vehicle charging proposition by purchasing Tesla’s latest ultra-fast charging units.

Dr Martens issued a profit warning as its profit before tax fell 55% to £25.8m for the six months ending September 30, 2023. The decline was primarily driven by challenges in the US, resulting in a 13% decrease in EBITDA and a 5% drop in revenues to £395.8m. The group’s wholesale revenue was impacted by strategic decisions and exits from certain markets. The second half’s trading performance was mixed, with warmer weather affecting the Autumn/Winter season and weaker overall traffic. Dr Martens expects a high single-digit percentage decline in full-year revenue and moderately below-consensus EBITDA, attributing challenges to the difficult US consumer environment.