Today’s news in brief-24/10/24
Frasers Group is pressuring Boohoo to appoint its founder Mike Ashley as CEO, criticising the current leadership’s handling of the business. In an open letter, Frasers, which holds a 27% stake in Boohoo, described the company’s recent performance as “abysmal,” following a 15% revenue decline to £620m for the six months ending August 2024. Boohoo’s profits are expected to continue dropping, marking six consecutive reporting periods of decline. Frasers also called the recent £222m refinancing agreement “wholly unsatisfactory” and urged Boohoo to consider alternative solutions.
Foschini Group (TFG), the owner of Whistles and Phase Eight, is in advanced talks to acquire British fashion retailer White Stuff. While a formal agreement has not been reached, a deal could be finalised soon, though the price remains undisclosed. White Stuff, founded in 1985, operates over 100 stores and has more than 500 global stockists. Foschini is reportedly interested in expanding White Stuff’s future operations.
Very Group reported a strong financial performance, with operating profit rising 17.1% to £218.3m for the year ending June 2024, driven by careful cost management. EBITDA also rose by 8.4% to £267.6m. While overall group revenue dipped by 1% to £2.13bn, revenue from Very UK grew by 0.7% to £1.84bn. The company attributed its resilient performance to its robust business model, which blends digital retail with flexible payment options.
Dunelm saw a 3.5% rise in sales to £403m for the first quarter ending September 2024, with strong growth across all categories, particularly in its sofa collections. The retailer’s digital sales grew as well, now accounting for 37% of total sales. Gross margins increased year-on-year, and the company is on track to achieve margins between 51% and 52% for FY25. Dunelm plans to open five to ten new superstores by the end of the year, including its first inner London location.
Amazon has expanded its same-day delivery service to 80 towns and cities across the UK, including new additions like Aberdeen, Middlesbrough, and Plymouth. The service is available to Prime members at no extra cost and has seen a doubling of items delivered since 2023. Popular items ordered for same-day delivery include water wipes, Fire TV Sticks, and beauty products.
