Profit Warning
Profit warnings are key indicators of financial and operational challenges within the UK retail sector, often signalling shifts in market conditions or internal business pressures. For retail executives, store owners, and supply chain leaders, tracking profit warnings is essential to understanding emerging risks, competitor performance, and potential impacts on partnerships and supply chains. Retail Sector’s coverage of profit warnings includes timely reporting on announcements from major retailers, analysis of the factors driving underperformance, and insights into how businesses are responding. We provide in-depth context to help professionals across physical retail, ecommerce, and omnichannel operations make informed strategic decisions in a rapidly changing market.
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Feb- 2024 -28 FebruaryElectrical
Halfords issues profit warning as core markets weaken
Halfords has announced that it now expects its full year PBT to be in the range of £35-40m, down from the £48m and £53m it previously expected. This comes as a result of three of the company’s four core markets weakening resulting in a significant drop in like-for-like revenue growth.…
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2 FebruaryNews
Today’s news in brief-2/2/24
The overall percentage of UK-listed companies issuing profit warnings reached 18.2%, surpassing the levels observed during the 2008 financial crisis. Particularly, the FTSE retail sector struggled, with two in every five retailers issuing profit warnings. The retail industry issued a total of 24 profit warnings in 2023, indicating a notable…
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2 FebruaryEconomy
Two in five FTSE retailers issued profit warnings last year
The percentage of UK-listed companies issuing profit warnings last year hit 18.2%, exceeding the levels seen at the peak of the financial crisis in 2008, according to new findings from EY. In particular, the rate of profit warnings remained high for FTSE retailers, with two in every five FTSE retailers…
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Jan- 2024 -17 JanuaryNews
Today’s news in brief-17/1/24
In a surprising turn of events, inflation in December exceeded economists’ predictions, rising to 4%, contrary to the forecasted decrease to 3.8%. The Office for National Statistics (ONS) reported that the upswing was driven by increases in fuel and tobacco prices. Notably, alcohol and tobacco division prices surged by 12.8%,…
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17 JanuaryNews
Superdry hires PwC to explore debt options
Superdry is believed to have appointed accountancy firm PwC to explore its debt options, Sky News has revealed. The clothing retailer is supposedly working with advisers from the firm to review the funding options following a pre-Christmas profit warning. The news comes after Superdry reported YoY sales decrease of 13.1%…
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Dec- 2023 -19 DecemberNews
Today’s news in brief
South Korean e-commerce giant Coupang has reportedly reached an agreement to acquire Farfetch in a $500m rescue deal. The transaction involves a bridge loan to Farfetch and negotiations with a group of debtholders holding a significant portion of Farfetch’s term loan. The London-based luxury retailer is expected to undergo acquisition…
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19 DecemberClothing & Shoes
Superdry issues FY24 profit warning amid mild weather
Superdry has warned on profits for the 26-week period ended 28 October, attributing a 13% year-on-year drop in sales to “abnormally mild” weather. While the retailer expected wholesale to be down 41.1% year-on-year due to its decision to exit its US wholesale operation, it was also driven by “timing differences…
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Nov- 2023 -30 NovemberNews
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…
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30 NovemberClothing & Shoes
Dr Martens issues profit warning amid challenging US backdrop
Dr Martens has issued a profit warning due to challenging headwinds in the US. The British footwear brand’s profit before tax fell 55% to £25.8m for the six months ending 30 September. The group also reported that its EBITDA fell 13% and revenues declined 5% from £418.6m to £395.8m primarily…
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16 NovemberLuxury Goods
Burberry issues profit warning as luxury sales slow
Burberry has revealed its annual adjusted operating profits would be towards the lower end of its current consensus range of £552m-£668m following a slowdown in demand for luxury goods. This comes despite a 4% increase in revenues to £1.396bn during the 26 weeks ended 30 September 2023. Q2 comparable store…
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