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News-In-Brief

Today’s news in brief-6/11/24

Marks & Spencer (M&S) reported a strong half-year performance, with profits rising 17.2% to ยฃ407.8m for the period ending 28 September 2024. Revenue increased by 5.7% to ยฃ6.48bn, attributed to the companyโ€™s “Reshape M&S for Growth” strategy. Food sales grew 8.1%, while Clothing and Home sales rose by 4.7%. Despite these gains, its Ocado Retail joint venture recorded a smaller adjusted loss of ยฃ16m, down from ยฃ23.4m last year. M&S noted that its new and updated UK stores are performing above forecasts, prompting plans for increased site acquisitions to accelerate store upgrades.

Zalando delivered promising results in Q3, reporting a 5% revenue increase to โ‚ฌ2.4bn (ยฃ2bn) and a rise in adjusted EBIT to โ‚ฌ93m (ยฃ77.5m). Gross merchandise volume grew by 7.8% to โ‚ฌ3.5bn (ยฃ2.9bn). The company saw its active customer base increase to 50.3 million, spurred by demand in both Business-to-Consumer (B2C) and Business-to-Business (B2B) categories. CFO Sandra Dembeck credited the growth to consumer interest in quality brands and Zalandoโ€™s expanded offerings, particularly in Sports, Beauty, and Kids & Family. Zalando has upgraded its FY24 forecast, expecting GMV to grow between 3% and 5%, with revenues projected to increase between 2% and 5%.

Hugo Boss reported flat sales for Q3, with revenue at โ‚ฌ1.02bn (ยฃ833m), reflecting challenges from macroeconomic and geopolitical uncertainties. Operating profit declined by 7% to โ‚ฌ95m (ยฃ79m) over the quarter. Despite the slowdown, currency-adjusted sales for the first nine months of 2024 were up 2% year-on-year at โ‚ฌ3bn (ยฃ2.5bn). Menswear grew modestly by 1% and womenswear by 2%, with EMEA sales seeing a 1% rise, largely due to gains in Germany that offset weaker sales in France and the UK. In the Americas, revenues rose 4%, while Asia Pacific sales dropped 7%, particularly in China, where weak demand persisted.

Aldi announced plans to open 11 new UK stores before Christmas, continuing its ambitious target of reaching 1,500 UK stores. As part of a ยฃ800m investment this year, Aldi will open locations in the West Midlands, Scotland, and other regions, while refurbishing more than 15 stores to improve customer experience. The new openings are aimed at extending Aldiโ€™s accessibility and affordability, with starting pay for store assistants set at ยฃ12.40 per hour, or ยฃ13.65 in London, making it one of the few retailers to offer paid breaks.

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