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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Jun- 2019 -11 JuneAdvice
Understanding the true cost to serve
The boom in the e-commerce industry over the last 10 years has led to a saturated marketplace, with retailers facing competition from every angle: pureplay, omnichannel and Direct to Consumer. This saturation has resulted in a fiercely competitive marketplace, and will be worth over €200bn (£178bn) in the UK by…
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11 JuneHigh Street
Ted Baker shares plunge amid fresh profit warning
Fashion retailer Ted Baker has issued its second profit warning this year, and anticipates underlying profit before tax for the year ending 25 January 2020 to be in the range of £50m to £60m. Shares plummeted by nearly 25% in early trading today (11 June), and the retailer said “ongoing”…
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May- 2019 -9 MayClothing & Shoes
Superdry issues profit warning as trading ‘continues to be weak’
Superdry has said its “trading performance continues to be weak” as the clothing retailer issued another profit warning in its trading update for the 13-week period to 27 April 2019. Its wholesale and e-commerce revenues performed the worst in Q4 with declines of 9.3% and 3.9% respectively. Year-on-year wholesale revenue…
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Apr- 2019 -26 AprilClothing & Shoes
Laura Ashley shares tumble 20% amid fresh profit warning
Laura Ashley has seen its shares tumble 20% in early trading after it issued a profit warning indicating figures will fall “significantly below market expectations”. While at the time of writing shares have recovered slightly and now sit at 9.6% down from opening, the news follows the release of its…
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12 AprilClothing & Shoes
Uniqlo operator issues profit warning
Uniqlo operator, Fast Retailing, has issued a profit warning after it was forced into heavy discounting on its winter range caused by warmer than expected weather. Fast Retailing forecast an operating profit of ¥260bn (£1.79bn) for Uniqlo in the full year leading up to August, down ¥10bn (£69m) according to…
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9 AprilDepartment Stores
Debenhams enters pre-pack administration
Debenhams has entered pre-pack administration and gone into the control of its lenders following the department store’s rejection of Sports Direct’s offer to underwrite £150m equity issuance. The pre-pack administration will see all of the company’s shareholders – including Sports Direct which has a 30% stake – wiped out and…
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Mar- 2019 -21 MarchClothing & Shoes
Ted Baker profits plunge 26% in 2018
Fashion retailer Ted Baker has reported a 26.1% drop in pre-tax profit to £50.9m for the year ending 26 January 2019, compared with £68.8m the previous year. In February, the retailer issued a profit warning and said profits had been “adversely affected” by three non-cash impacts, including: Foreign exchange movements…
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19 MarchClothing & Shoes
Bonmarche issues another profit warning
Clothing retailer Bonmarche has warned on its profits after it saw “significantly weaker” trading since the beginning of March. The retailer said its performance reversed sales gained in previous months and said if this continued for the rest of the month, it expected its underlying profit before tax to record…
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18 MarchClothing & Shoes
JD Sports to buy Footasylum for £90.1m
JD Sports has revealed it has made an offer to buy its remaining shares in struggling rival retailer Footasylum in a £90.1m takeover. JD Sports said it had “reached [an] agreement on the terms of a recommended cash offer” which will be financed from JD’s existing cash resources and facilities.…
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11 MarchDepartment Stores
Debenhams in talks to secure £150m lifeline
Embattled department store Debenhams has confirmed it is in “advanced negotiations” to secure £150m funding from its lenders just a week after it issued another profit warning. The company saw a drop in sales for the half year to 2 March, leading it to say the profit expectations it announced…
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