Today’s news in brief-27/3/25
Next has reported record pre-tax profits of £1bn for the year to January 2025, marking a 10.1% increase, and has raised its full-year profit guidance by £20m to £1.06bn. The retailer attributed its strong performance to acquisitions like Reiss and FatFace, with total group sales rising 8.2% to £6.3bn. Online sales grew 4.6%, though retail sales dipped slightly. The company also upgraded its half-year sales forecast but warned that upcoming UK tax rises could weaken consumer confidence. Despite surpassing the £1bn profit milestone, Next emphasized the need for continued cost discipline and capital allocation.
H&M’s Q1 operating profit fell 42% to SEK 1.2bn (£95m), citing external pressures and increased markdowns. Sales rose 2% to SEK 55.3bn (£4.3bn), slightly below expectations. The retailer plans to open 80 new stores in 2025 while closing 190, focusing on enhancing its customer proposition. CEO Daniel Ervér acknowledged short-term challenges but expressed confidence in long-term growth through investments in digital and physical retail.
Foot Locker has appointed Franklin R. Bracken as president, effective immediately. Bracken, previously chief commercial officer, will continue driving the company’s Lace Up Plan, focusing on omnichannel growth. With nearly 30 years of retail experience, he has been instrumental in expanding Foot Locker’s global presence and digital transformation. CEO Mary Dillon praised his contributions, highlighting his role in strengthening brand partnerships and customer engagement.
A campaign led by ShareAction, backed by investors including Axa and Scottish Widows, is urging major retailers like Next, M&S, and JD Sports to pay the real living wage. Nearly a quarter of UK retail workers earn below this benchmark, prompting shareholder resolutions demanding transparency on pay gaps. While M&S pays the real living wage to direct staff, it excludes contractors, whereas JD Sports and Next adhere only to the legal minimum wage. ShareAction argues that fair pay is essential for economic vitality and worker well-being.
Homewares retailer Lakeland is reportedly in takeover talks with Modella Capital, owner of Hobbycraft, amid a search for new funding. Hilco has also shown interest in the business, which faces economic pressures ahead of National Insurance hikes. Lakeland, which operates nearly 60 stores, is exploring options to secure its future, including potential restructuring. The outcome could shape its ability to navigate ongoing retail challenges.