Today’s news in brief-6/11/24
Marks & Spencer (M&S) reported a strong half-year performance, with profits rising 17.2% to £407.8m for the period ending 28 September 2024. Revenue increased by 5.7% to £6.48bn, attributed to the company’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 £16m, down from £23.4m 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 €2.4bn (£2bn) and a rise in adjusted EBIT to €93m (£77.5m). Gross merchandise volume grew by 7.8% to €3.5bn (£2.9bn). 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 Zalando’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 €1.02bn (£833m), reflecting challenges from macroeconomic and geopolitical uncertainties. Operating profit declined by 7% to €95m (£79m) over the quarter. Despite the slowdown, currency-adjusted sales for the first nine months of 2024 were up 2% year-on-year at €3bn (£2.5bn). 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 £800m 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 Aldi’s accessibility and affordability, with starting pay for store assistants set at £12.40 per hour, or £13.65 in London, making it one of the few retailers to offer paid breaks.
