Today’s news in brief-29/10/24
The British Retail Consortium (BRC) has urged the chancellor to prioritise keeping prices low as shop price deflation reached 0.8% in October, marking its lowest rate since August 2021. Food inflation also eased, with fresh food and ambient food prices falling. BRC’s CEO Helen Dickinson stressed that although this trend benefits households, it is vulnerable to global tensions, climate impacts on food supply, and regulatory costs. She called for a 20% business rate reduction on retail properties to help maintain affordable pricing, protect jobs, and encourage investment.
Adidas reported strong Q3 results, with a 10% increase in currency-neutral revenues, primarily driven by growth in its core business. In euro terms, revenue reached €6.4bn, with operating profit up 46% to €598m. A sale of leftover Yeezy inventory contributed around €200m, down from the previous year but added €50m to the quarter’s profit. Footwear sales rose 14%, apparel by 5%, and accessories by 10%. Regional growth was robust in Europe and emerging markets, although North America saw a 7.3% drop due to reduced Yeezy sales.
New Look narrowed its pre-tax losses from £87.8m to £21.7m for the year ending March 2024, despite an 8.9% drop in sales to £769.2m. The revenue decline was driven by store closures and challenging trading conditions, though online sales remained stable at £217.5m. New Look has adjusted its stock strategy toward long-lasting, high-appeal items to protect margins amid high regulatory costs, including minimum wage hikes.
Permira Growth Opportunities II, part of the firm managing Dr. Martens, announced its acquisition of a minority stake in K-Way, a French outerwear brand known for its iconic windbreakers. Permira aims to leverage its expertise with consumer brands to support K-Way’s expansion, particularly through direct-to-consumer channels and international growth. Plans include strengthening K-Way’s presence in France and Italy, increasing its product range, and launching new stores.
Abercrombie & Fitch and Hollister’s UK arm saw pre-tax profits triple to £9.8m in FY24, with revenue up 25% to £213m. Store sales increased to £101.4m, while online sales rose to £100.6m. Despite strong financial results, AFH Stores UK acknowledged the continued challenges posed by economic conditions, including inflationary pressures and supply chain disruptions.
Jollyes appointed Adam Dury as its chief operating officer, effective January. Dury, who previously held a senior role at Card Factory, will join Jollyes as it continues its growth trajectory. Jollyes also recently appointed Richard Willan as chief financial officer, further reinforcing its leadership team as it seeks to expand its footprint and enhance customer service.
