Today’s news in brief-20/3/24
UK inflation dropped to 3.4% in February 2024, surpassing economists’ expectations of 3.5%. This decline was mainly attributed to easing food inflation. The prices of bread and cereals rose slightly by 0.3% compared to a significant increase of 2.3% in the previous year, contributing to the overall decrease in food prices. Additionally, prices in the transport division experienced a slight decrease. Core CPI, excluding energy and food, also showed a decrease from 5.1% to 4.5%.
Kering anticipated a decline of approximately 10% in first-quarter revenue for 2024 compared to the previous year. This decline was primarily due to a significant drop in sales at Gucci, especially in the Asia-Pacific region. Despite this, Kering noted a positive reception for its new Ancora collection, with early products being offered in selected Gucci stores since mid-February. The full quarterly revenue report, including the impact of Creed consolidation and foreign exchange, is expected to be released on April 23.
Mike Ashley, the owner of Frasers Group, acquired a consultancy role at model train company Hornby after building a substantial stake in the firm. Hornby confirmed Ashley’s advisory position to assist CEO Olly Raeburn and the company, aiming to improve its financial performance. Frasers Group became the third-largest shareholder in Hornby following the acquisition of more than 11 million shares in February.
Tesco lost a legal battle against Lidl regarding the Clubcard Prices logo, which Lidl argued infringed on its copyright. The Court of Appeal ruled in favour of Lidl, ordering Tesco to stop using the logo. This dispute stemmed from Tesco’s adoption of a logo resembling Lidl’s trademark for its Clubcard scheme. Despite the ruling, Tesco assured customers that its Clubcard Prices program would continue unaffected.
Abercrombie and Fitch signed an agreement with Hines to open a new store on Oxford Street in London. The store, scheduled to open in early 2025, will occupy two floors of a retail and office building. Positioned at a prime location, the store aims to enhance Abercrombie & Fitch’s presence in the UK market and offer an elevated shopping experience.
Kontoor Brands appointed Tom Waldron as its new chief operating officer, responsible for overseeing the global operations of Wrangler and Lee brands. This appointment aligns with the company’s efforts to simplify its organisation and increase efficiency. Waldron expressed optimism about driving growth and efficiency within Kontoor Brands, with Jenni Broyles and Ezio Garciamendez also appointed to key leadership roles within the organisation.
