Today’s news in brief-15/5/24
Tesco CEO Ken Murphy has seen his pay more than double to nearly £10m, fueled by a 159% rise in pre-tax profits to £2.29bn and a 7.4% increase in group sales excluding VAT and fuel. This pay increase, largely due to a performance share plan, raised his compensation from £4.44m last year. Tesco’s CFO Imran Nawaz also experienced a significant pay rise, earning £4.95m. The company reported UK like-for-like sales up 7.7%, contributing to its £61 billion in group sales.
Burberry faced a challenging year with a 40% drop in pre-tax profits to £383m, attributed to a 4% decline in sales to £2.97 billion and a significant downturn in the Asia Pacific and Americas markets. The luxury retailer’s fourth-quarter sales plummeted by 17% in the Asia Pacific and 12% in the Americas, overshadowing a strong first half of the year.
Lingerie brand Boux Avenue reported a widening of pre-tax losses from £1.5m to £8.7m, largely due to external economic challenges and significant investments in its distribution centre. Despite a decrease in turnover from £67.1m to £62.6m, Paphitis remains optimistic about future profitability, citing improved margins, digital marketing, and distribution efficiencies. He highlighted strong performance during key shopping periods and anticipates further improvement in the next financial year.
Zalando has appointed David Schröder as the new co-CEO, succeeding co-founder David Schneider, who will now focus on strategic partnerships and brand relations. Schröder, previously COO, will oversee the development of Zalando’s B2B operating system and infrastructure. Co-founder Robert Gentz will continue driving B2C growth, aiming to establish Zalando as a premier fashion and lifestyle shopping destination. The leadership change aligns with Zalando’s strategy to adapt to evolving consumer and partner needs, enhancing corporate functions, and executing long-term growth plans.
Angling Direct reported a robust financial performance with pre-tax profits of £1.5m, up from £700,000, and a 10.2% increase in revenues to £81.7m for the year ending January 2024. The company’s store sales grew by 7.6%, while online sales surged by 13.5%. The launch of MyAD, a customer loyalty scheme, contributed to this growth. UK online sales rose by 11.1%, now 62.8% above pre-Covid levels. Angling Direct also expanded its footprint by opening new stores, including its first European outlet in Utrecht, Netherlands.
