Today’s news in brief-9/8/24

Recent riots and protests across UK towns have significantly deterred shoppers, leading to a 4.8% decrease in footfall across high streets and retail destinations. Regional cities like North Yorkshire and the West Midlands were hardest hit, experiencing declines as steep as 12.9%. The Retail Trust has reported an increase in calls from concerned retail workers amidst rising safety fears due to incidents of looting and vandalism.

Asda reported a 2.2% decrease in revenues excluding fuel, totaling £5.3bn for Q2. Despite this, the supermarket saw a 2% growth in total revenue for the first half of the year, driven partly by a 1.4% increase in online grocery sales. Asda has initiated a £50m store upgrade program and increased investment in staff hours to enhance customer experience and service efficiency.

Under Armour reported a $300m operating loss for Q2, attributing it to a 10% decline in revenues to $1.2bn. The North American market saw a 14% drop in revenue, while international revenue remained relatively flat. The company’s restructuring efforts, including a $70-90m plan, aim to streamline operations and improve financial performance amid ongoing revenue challenges.

CMO Group PLC experienced a 17% decrease in sales to £30.3m in H1, primarily due to adverse weather impacting sales across its building, plumbing, and tiles segments. Despite these challenges, positive sales momentum was observed in Q2 and July, particularly in plumbing sales. The group remains optimistic about recovery, bolstered by market developments and recent interest rate cuts.

Mountain Warehouse reported a record £386m in sales for FY, driven by a 7.1% increase in store sales and strategic expansion including 21 new UK stores. The outdoor retailer attributed its success to strong high street presence post-pandemic, alongside a 2.2% growth in online sales. The company’s profitability rebounded with a £26.2m pre-tax profit, emphasising its commitment to omnichannel retail and global expansion plans.