Today’s news in brief-29/4/25

Primark reported a 1% rise in sales to £4.47bn in the first half of the year, with adjusted operating profit up 8% to £540m. However, UK and Ireland sales fell by 4% due to cautious consumer spending and mild autumn weather affecting seasonal purchases. The retailer’s market share in the UK dipped slightly from 6.9% to 6.7%. Despite this, its Click and Collect service is gaining traction, with plans to expand it to all 187 UK stores by mid-2025. Growth was driven by strong performances in the US (up 17%), Spain and Portugal (up 8%), and France and Italy (up 4%), supported by new store openings. Parent company ABF highlighted a £212m investment in store expansions and refurbishments, with further growth expected in key markets.

Adidas posted a 13% revenue increase to €6.1bn (£5.2bn) in Q1, with operating profit surging 82% to €610m (£517.8m). Sales grew by 17%, driven by double-digit growth across all regions, including Latin America (up 26%) and Europe (up 14%). However, CEO Bjørn Gulden cautioned that rising US tariffs could lead to higher costs and potential price increases, creating uncertainty for the year ahead. While the company maintains its full-year outlook, Gulden noted that external economic risks could impact future performance.

Gymshark achieved record revenues of £607.3m in the year to July 2024, marking 12 consecutive years of growth. However, pre-tax profit fell to £11.8m as the brand invested in omnichannel expansion, including a flagship New York store set to open soon. UK sales rose to £136.4m, while European sales (excluding the UK) grew by 12.6%. CEO Ben Francis emphasised cost control as the company transitions to a fully omnichannel model.

THG’s revenues edged up 1.1% to £1.8bn in FY24, with adjusted EBITDA at £123.1m. The demerger of its Ingenuity division has refocused the group on THG Beauty and THG Nutrition, with Beauty performing particularly well. However, Q1 2025 revenues fell 6.1% to £371.4m, though THG remains confident in its mid-single-digit growth forecast for the full year. CEO Matt Moulding highlighted efficiency improvements and a leaner cost base.

Vinted’s net profit soared by 330% to €76.7m (£65.1m) in FY24, with revenues up 36% to €813.4m (£690.5m). The second-hand marketplace expanded into Croatia, Greece, and Ireland, while growing its luxury fashion and electronics categories. CEO Thomas Plantenga attributed success to cost control and innovation, with further expansion planned for 2025.

Food inflation increased to 0.1% in April, up from -0.4% in March, driven by rising labour costs and supply chain pressures. Fresh food inflation climbed to 1.8%, while ambient food inflation held steady at 3.7%. The British Retail Consortium warned that new employment costs and packaging taxes could further push prices up, impacting consumer spending.