Today’s news in brief-17/9/24
THG (The Hut Group) has announced plans to potentially demerge its technology arm, THG Ingenuity. This move follows the group’s interim results for the half-year ending June 30, 2024, which showed a 1.6% rise in adjusted EBITDA despite a 3.6% decline in year-on-year sales. THG Ingenuity saw a notable 12.6% sales increase, while THG Beauty and THG Nutrition showed mixed performance.
London Mayor Sadiq Khan has announced plans to pedestrianise Oxford Street, aiming to transform it into a world-leading retail destination. Supported by government ministers, the proposal includes creating a Mayoral Development Area and establishing a Mayoral Development Corporation to oversee the project. Oxford Street, a vital economic hub generating £22.75bn annually, seeks regeneration amid challenges from online retail and pandemic impacts.
Pret A Manger has achieved record global sales of £1.1bn for FY23, driven by international expansion and positive same-store sales growth. The company surpassed its medium-term growth target three years ahead of schedule, with a focus on new markets like the US and plans for further expansion in Scotland and Ireland. CEO Pano Christou credited the achievement to strategic initiatives and customer loyalty amid post-pandemic recovery.
Kingfisher reported a 2.3% increase in statutory pre-tax profits to £324m for the first half of FY24 despite a 1.8% decline in sales to £6.8bn. The UK and Ireland markets showed resilience in core categories despite weak ‘big-ticket’ sales, with strong performances from Screwfix and TradePoint. CEO Thierry Garnier highlighted effective cost management and market share gains in challenging consumer environments across different regions.
Fashion retailer AllSaints reported a 40% increase in operating profit to £39.9m for FY23, with total revenue reaching £459.5m. The brand’s strategic focus on wholesale, franchise, and licensing contributed to growth despite a slight decline in retail revenue. CEO Peter Wood emphasised the brand’s commitment to sustainable growth and ongoing investments in store expansions and digital enhancements.
Søstrene Grene reported a 15% increase in pre-tax profit to £24m, alongside a 22% rise in turnover to £247m for the year ending April 30, 2024. The company plans significant investments in SAP systems, warehouse automation, and digital capabilities to support its expansion strategy. With ambitions to reach 500 stores globally by 2027, CEO Mikkel Grene highlighted customer-centric innovations and resilience amid economic challenges.