Today’s news in brief-26/11/24
AO World has raised its full-year profit forecast to between £39m-£44m after reporting a 30% rise in pre-tax profits to £17m for the six months ending 30 September. Despite adverse summer trading conditions due to wet weather, which affected cooling product sales, AO’s B2C retail revenue grew 13%. Group revenue is expected to hit £1.09bn-£1.13bn. Gross margin improved to 24.4%, supported by efficiency savings that offset inflationary pressures. The retailer anticipates up to £8m in additional costs from recent budget changes but aims to mitigate the impact.
Allan Leighton, newly appointed chair of Asda, outlined a three-to-five-year turnaround strategy focused on restoring the retailer’s pricing, availability, and IT systems after its transition from Walmart. A search for a new CEO is underway. Leighton, a former Asda CEO, aims to revive the company’s core identity and strengthen operations. Asda recently announced redundancies and reported a Q3 revenue decline of 2.5% to £5.3bn, with like-for-like sales falling 4.8%.
Secret Sales has expanded its European presence by acquiring H&M Group’s off-price digital marketplace, Afound. The acquisition adds operations in the Nordics, Germany, and other European regions, boosting Secret Sales’ network to 10 countries and enhancing its platform with Afound’s established brand. With over 16m account holders and 150m annual visits, Secret Sales seeks to redefine off-price retail with premium offerings.
Sosandar narrowed its losses to £0.7m for H1 2024, down from £1.3m the previous year, driven by margin improvements and cost management. However, revenues fell from £22.2m to £16.2m as the company shifted away from extensive promotional activity. Sosandar opened its first standalone stores, attracting 65% new customers, and forecasts full-year revenues of £40.5m with a £1m pre-tax profit.
Represent has sold a minority stake to investment firm True to accelerate its global expansion, including launching a womenswear line in 2025. Represent has grown rapidly, with a 64% CAGR since 2020, and expects £100m in revenue this fiscal year. The brand, known for its luxury and performance sportswear, opened stores in Los Angeles and Manchester, with a London outlet planned for 2025.
Halfords reported a 1% drop in H1 revenue to £864.8m, with mixed performance across segments. While motoring services saw slight growth, cycling sales were weaker due to discretionary spending challenges. The company maintained an underlying PBT of £21m but flagged significant cost pressures from recent budget changes, including an added £23m in labor costs for FY26.
