Today’s news in brief-25/1/24
Halfords reported that its Q3 total revenues were up 1.6%, with a 2.0% increase on a like-for-like basis. However, December sales were weaker than expected due to mild and wet weather impacting demand for winter products and footfall in stores. While October and November showed strong sales, the weaker December was attributed to customers making difficult spending decisions before Christmas. Retail Motoring experienced a decline of -15.3% in December, contrasting with a monthly LFL growth of +10.2% in October and November. Halfords maintained its full-year guidance, expecting profits within the range of £48m to £53m, contingent on market conditions not deteriorating further in Q4.
Dr Martens disclosed a 21% drop in Q3 revenue to £267.1m, with a restated full-year guidance anticipating a high single-digit percentage decline in constant currency revenue. E-commerce revenue decreased 9%, and wholesale revenue fell by 49% (reported) or 46% (constant currency), primarily due to declines in the Americas and EMEA. Despite these challenges, retail revenue grew by 3% on a constant currency basis. The company acknowledged external factors, including abnormal weather conditions, impacting its performance. The devaluation of the pound is expected to result in a currency headwind of approximately £5m on the profit and loss statement.
JD.com has announced a partnership with Evri to facilitate European brand expansion in China. The collaboration aims to establish two-way logistics services spanning China and Europe, offering services such as local pick-up, warehousing, international transportation, customs clearance, and delivery across China. JD Worldwide, the cross-border e-commerce platform, will provide insights on the Chinese market to Evri’s retail partners. The partnership, initially focusing on beauty and apparel sectors, aims to enhance JD.com’s service capabilities in Europe while providing European brands direct access to the Chinese market.
Puma reported a full-year currency-adjusted sales growth of 6.6%, reaching €8.6bn (£7.3bn) in 2023. The devaluation of the Argentinian peso by 54% in December 2023 impacted reported financial performance, resulting in a significant gap between underlying operating performance and recorded financial performance. Despite this, Q4 EBIT was strong at €94m (£80m), in line with expectations. For the coming year, Puma anticipates mid-single-digit currency-adjusted sales growth and an EBIT in the range of €620m (£530m) to €700m (£599m).
White Stuff has revealed plans to open a new flagship store at Liverpool One, aiming to create a multi-channel, modern lifestyle brand. The 1,800 sq. ft store on Peter’s Lane will stock White Stuff’s entire range, including the Spring Collection. This move aligns with the brand’s strategy to broaden its appeal and style credentials. For the 52 weeks to April 29, 2023, White Stuff reported a 13.3% increase in total sales to £151.4m, with EBITDA more than doubling to £7m..
N Brown Group has appointed Natalie Rogers as its new chief people officer. Rogers, with over 25 years of cross-sector experience, will lead the People function and team, focusing on fully embedding the group’s agile operating model during its enterprise-wide agile transformation. She has previously served as chief people officer at Moonpig.com and Unum UK, supporting key strategic and complex business and culture transformation programs. Rogers will join the N Brown executive board, reporting directly to Group CEO Steve Johnson.
