Latest news with #operatingprofits
Yahoo
02-07-2025
- Business
- Yahoo
Greggs warns over profits as heatwave dents sales
The heatwave has hit sales at bakery chain Greggs as it warned over full-year earnings after seeing less demand for its hot food in recent searing temperatures. The group said fewer customers passed through its doors as Britain sweltered in blistering weather. While like-for-like sales rose 2.6% overall in the six months to June 28, it said growth slowed in June as 'high temperatures impacted consumer purchasing patterns'. 'Like-for-like sales in June were impacted as very high temperatures affected the UK, increasing demand for cold drinks but reducing our overall footfall,' it added. Greggs said it now expects that annual operating profits could be 'modestly' lower year on year. The UK has seen temperatures soar since late June, with the country experiencing its hottest day of the year so far on Tuesday, with temperatures exceeding 34C. The Met Office confirmed that 34.7C was recorded at St James's Park in central London on Tuesday afternoon, beating a 34.4C reading recorded in Writtle, Essex earlier in the day. Greggs said half-year results on July 29 are set to show lower operating profits for the first six months as it came up against strong trading from a year earlier. 'Whilst acknowledging that comparative like-for-like sales are less demanding in the second half of the year, in light of the current trading conditions the board now anticipates that the full-year operating profit could be modestly below that achieved in 2024,' the group said.
The Independent
02-07-2025
- Business
- The Independent
Greggs warns over profits as heatwave dents sales
The heatwave has hit sales at bakery chain Greggs as it warned over full-year earnings after seeing less demand for its hot food in recent searing temperatures. The group said fewer customers passed through its doors as Britain sweltered in blistering weather. While like-for-like sales rose 2.6% overall in the six months to June 28, it said growth slowed in June as 'high temperatures impacted consumer purchasing patterns'. 'Like-for-like sales in June were impacted as very high temperatures affected the UK, increasing demand for cold drinks but reducing our overall footfall,' it added. Greggs said it now expects that annual operating profits could be 'modestly' lower year on year. The UK has seen temperatures soar since late June, with the country experiencing its hottest day of the year so far on Tuesday, with temperatures exceeding 34C. The Met Office confirmed that 34.7C was recorded at St James's Park in central London on Tuesday afternoon, beating a 34.4C reading recorded in Writtle, Essex earlier in the day. Greggs said half-year results on July 29 are set to show lower operating profits for the first six months as it came up against strong trading from a year earlier. 'Whilst acknowledging that comparative like-for-like sales are less demanding in the second half of the year, in light of the current trading conditions the board now anticipates that the full-year operating profit could be modestly below that achieved in 2024,' the group said.
Daily Mail
26-06-2025
- Business
- Daily Mail
H&M profits fall as stores close and boss weighs 'uncertain times'
H&M Group has unveiled a sharp fall in operating profits after the retailer closed stores and suffered the impact of currency fluctuations and high freight costs. The world's second-largest listed fashion retailer saw operating profits slump 22 per cent for the six months to SEK 7.1billion, or £548million, in the six months to 1 May. It credited the drop to a lower gross margin driven by 'negative external factors such as a more expensive US dollar and high freight costs, but also by markdowns and the company's investments in the customer offering'. H&N also finished the second quarter with 4 per cent fewer shops worldwide than it had at the same point a year ago. At the beginning of the second quarter, the business had 125 fewer stores than at the same time a year earlier, with net store closures coming in at 47. Across all its locations, it had 4,166 shops on 31 May 2025, against 4,319 a year ago. Update: H&M Group flagged store closures and lower operating profits in its latest half-year update During the first six months of the current financial year, 24 new stores opened and 111 shops closed, H&M Group said. The group, which operates H&M and brands like Cos and & Other Stories, said there were 3,706 H&M stores open globally on 31 May 2025, compared to 3,832 the previous year. H&M eyes improvement The world's second-largest listed fashion retailer said it expected sales in June, measured in local currencies, to rise 3 per cent, representing an improvement after a 6 per cent fall a year ago in the same period. H&M also said it was ploughing on with plans to open new shops and an online shopping website in Brazil later this year. The group said it would benefit from Brazil's population of around 200million people. Chief executive, Daniel Ervér, said: 'Our plan, with its focus on the product offering, the shopping experience and brand, is again confirmed by the progress we see. 'The positive development in important areas such as online, H&M womenswear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development. 'In uncertain times with cautious consumers we monitor macroeconomic and geopolitical developments closely and continuously adapt both the customer offering and the business to meet our customers' needs in the best way. In November, H&M confirmed it would be closing its call centre in Edinburgh, Scotland, with 150 jobs lost. H&M blamed increased competition, changing customer behaviours and operational costs for the closure. The Swedish-based business announced during the Covid-19 pandemic that it planned to close 250 shops globally. This year, the group closed all its Monki stores across Britain. British retailers face a barrage of higher costs as a result of changes to employer national insurance contributions and the national minimum wage announced in the Autumn Budget by Rachel Reeves last year.
Daily Mail
21-05-2025
- Business
- Daily Mail
M&S expects £300m profit impact as cyberattack disrupts operations until July
Marks & Spencer has warned that a 'major cyber incident' will cause a £300 million reduction in operating profits this year. The retailer confirmed that the disruption began over the Easter weekend and continues to impact multiple areas of its business. Online sales for fashion, home, and beauty have been 'heavily impacted', according to the company's financial update. The scale of the breach prompted a pause in website orders and led to visible effects in physical stores, including widespread stock issues. 'It has been challenging, but it is a moment in time,' said Chief Executive Stuart Machin, who expressed confidence in the company's recovery. As a direct result of the breach, customers encountered empty shelves and halted online services throughout late April and May. Some stores, including major locations like Paddington and Cambridge, experienced temporary stock shortages. While food availability was also disrupted, M&S stated this area is 'already improving' as systems are restored. In-store operations were affected as the company overhauled internal IT infrastructure. M&S clarified that 'payments and click and collect orders were also impacted,' but reassured customers that improvements are now underway. One of the more serious aspects of the breach involved the theft of personal customer data. M&S confirmed that hackers accessed information which may include names, email addresses, postal addresses, and dates of birth. While no financial data exposure was reported, the company acknowledged the seriousness of the breach. 'We are now focused on recovery,' said Machin, adding that safeguarding customer trust remains a top priority. Security and legal teams are continuing to assess the extent of the breach and guide mitigation strategies. UK authorities believe a known group of English-speaking teenage hackers may be behind the M&S incident. 'We are looking at the group that is publicly known as Scattered Spider,' said Paul Foster of the National Crime Agency. The agency is coordinating with cybersecurity partners to trace the source of the attack and prevent further incidents. According to the BBC, the same group has also targeted other UK retailers like Co-Op and Harrods. Google confirmed that attacks believed to be by this group are also occurring in the U.S., adding urgency to global defensive efforts. Despite the financial hit and customer inconvenience, M&S leadership is positioning the breach as a moment of transformation. There is no change to the company's growth strategy, and the event may even help speed up its execution. 'The incident allows us to accelerate the pace of change as we draw a line and move on,' said Machin. M&S emphasized that insurance and internal cost management will help offset some of the financial losses. Shares, which had recently reached a nine-year high, fell after the incident, but executives remain focused on long-term stability.
Daily Mail
21-05-2025
- Business
- Daily Mail
BREAKING NEWS Marks and Spencer say cyber attack will cost them £300MILLION and disrupt customers until July as NCA investigators say they are looking at British hackers Scattered Spider
Marks and Spencer has said disruption from a major cyber attack is expected to continue through to July and reduce operating profits by around £300million before action to offset the hit. The company unveiled its financial performance for the past year in an update to the stock market this morning after the damaging cyber attack halted all online orders. It is almost a month since the retailer was first impacted by a major 'cyber incident', with the National Crime Agency looking at links to hacking group Scattered Spider. The British retail giant has paused online orders for the past three weeks as a result of the attack, while payments and click and collect orders were also impacted. M&S saw availability in stores also knocked by the disruption, causing some empty shelves as it changed parts of its IT systems, but has said this is now recovering. Customer personal data, which could have included names, email addresses, postal addresses and dates of birth, was taken by hackers in the attack. Analysts at Barclays had previously suggested the attack could result in a £200million cost for the 2025/26 financial year but this was likely to be offset by an insurance payout of around £100million. The attack knocked the business after a positive period under the leadership of Stuart Machin, with shares striking an almost nine-year high last month before a recent fall. More to follow
