Today’s news in brief-30/10/24
Next is on track to surpass £1bn in profits for the first time, following a strong performance in autumn. The fashion retailer revised its full-year profit guidance from £995m to £1.005bn, citing a 7.6% increase in third-quarter full-price sales, exceeding its 5.0% projection. Colder autumn weather contrasted with last year’s warmer conditions, boosting sales. Total online sales rose by 7.9%, while UK sales grew by 5.8%. The company has also raised Q4 sales growth guidance to 3.5%. The year’s total group sales are projected to increase by 7.4% to £6.27bn, with full-price sales reaching £5.02bn, largely due to acquisitions of FatFace and Reiss, which have contributed to Next’s growth trajectory.
VF Corp, the parent of brands like North Face and Vans, reported a 6% revenue decline in its fiscal Q2, reaching $2.8bn (£2.15bn). This marks an improvement from the 10% revenue drop in Q1. North Face sales decreased by 3%, while Vans revenues were down 11% but showed progress from the 21% drop in Q1. Despite the downturn, VF Corp’s gross margin improved to 52.2%. For Q3, VF Corp anticipates revenues between $2.7bn and $2.75bn, a 1-3% year-over-year decline.
Majestic Wine has partnered with Just Eat to extend its delivery service, with 43 stores already participating and plans to roll out to 177 locations by Christmas. This collaboration enhances Majestic’s online presence, building on the 20% of revenue generated from e-commerce in 2023/24. Majestic’s ‘Shop Local’ option has been popular, offering free same-day pickup or next-day delivery from local stores. The partnership allows Majestic to meet rising demand for rapid local delivery.
Dreams has launched a new premium concept store in East Sheen, introducing innovative retail technology in a smaller, high-street setting. The 4,000-square-foot store includes advanced Sleepmatch technology, floating shelves, and 55-inch digital displays, making it the first Dreams location to adopt these design features. This expansion is part of Dreams’ strategy to refine customer experiences, following significant investment in store refits and logistics in FY23.
Superdrug has committed to helping young care leavers by setting a target for them to represent 5% of its workforce by 2030. Through its Life Skills programme, Superdrug aims to boost employability and drive social mobility for care-experienced youth. The company is collaborating with the Care Leaver Covenant to actively promote job openings and support applicants in their job searches. Superdrug will cover new hires’ travel expenses until payday and offer in-work support through a buddy system.
