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Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
UK economy to grow 1.1% in 2025 & 1.2% in 2026: BCC
The UK economy is expected to grow by 1.1 per cent this year, according to the British Chambers of Commerce's (BCC) quarterly economic forecast. The previous forecast expected a growth of 0.9 per cent. Better-than-expected business investment in the first quarter this year (Q1) is forecast to boost gross domestic product (GDP), but the economy will remain sluggish, it said. Increased government spending is another contributor to growth. GDP is expected to rise in 2026 to 1.2 per cent, but that is slightly down from the last forecast (1.4 per cent). Growth in 2027 is forecast to be 1.5 per cent. The UK economy is expected to grow by 1.1 per cent in 2025, the British Chambers of Commerce projected. GDP is expected to rise to 1.2 per cent in 2026 and to 1.5 per cent in 2027. The UK manufacturing sector is expected to grow by 0.5 per cent this year. CPI inflation is forecast to be higher this year, reaching 3.2 per cent by Q4 2025 and unemployment is expected to be 4.6 per cent. The UK manufacturing sector is expected to grow by 0.5 per cent this year, revised up from a decline of 0.2 per cent in the previous forecast. With businesses facing increased cost pressures, consumer price index-based (CPI) inflation is forecast to be higher this year, reaching 3.2 per cent by Q4 2025 (up from 2.8 per cent in the Q1 forecast). It is then expected to fall to 2.2 per cent by the end of 2026 and 2 per cent in Q4 2027. Unemployment is expected to be 4.6 per cent throughout 2025, with the increase in national insurance contributions likely to slow hiring intentions. Business investment across 2025 is projected to be 4.8 per cent—a significant upgrade from 0.6 per cent in the last forecast. However, investment is expected to be focused in a smaller number of sectors like manufacturing and financial services. BCC survey data has consistently found that the majority of small and medium enterprises (SMEs) are not increasing their investment, with tax increases acting as a major barrier. After some recent positive trade developments, with the United States , EU and India, UK exports are projected to grow by 2 per cent in 2025, (an upward revision from a 0.5-per cent drop in the last forecast), 2.1 per cent in 2026 and 2.4 per cent in 2027. However, UK imports are expected to grow by 3 per cent this year (compared with 0 per cent in the previous forecast), before falling to 1.2 per cent in 2026, and then 2.6 per cent in 2027. This means net trade continues to contract, with figures of minus 1.2 per cent in 2025, minus 1.1 per cent in 2026 and minus 1.2 per cent in 2027. However, major uncertainties remain on the global trade outlook due to the potential for short term changes in policy leading to behavioural shifts among importers and exporters to manage the changes, BCC said in a release. Average earnings in the country are expected to remain significantly above inflation this year, reaching 4.2 per cent by the end of Q4, putting further cost pressures on businesses. The forecast suggests annual wage growth will remain elevated in the coming years, falling only very gradually to 4.1 per cent in 2026 and 4 per cent in 2027. Fibre2Fashion News Desk (DS)
Fibre2Fashion
28-05-2025
- Business
- Fibre2Fashion
Germany's economic expectations climb, but growth fears persist: Gfk
Consumer sentiment in Germany presents a mixed outlook for May, with noticeable improvements in economic and income expectations. However, the willingness to buy has declined slightly, while the inclination to save has risen again. The consumer climate indicator forecasts a moderate increase of 0.9 points to -19.9 for June 2025, up from a revised -20.8 in May, according to the GfK Consumer Climate powered by NIM, jointly released by NIQ and the Nuremberg Institute for Market Decisions (NIM). Both the slight decline in the willingness to buy and the increasing willingness to save are currently having a dampening effect on consumer climate and are preventing the noticeable growth in income and economic prospects from having a stronger impact on the consumer climate this month. The savings indicator rises by 1.6 points in May—following a significant decline in the previous month- and climbs to 10 points, as per the report. Consumer sentiment in Germany remains mixed in May, with income and economic expectations rising, but willingness to buy falling and saving increasing. The consumer climate index improved slightly to -19.9, the highest since November 2024. Concerns over trade policies, market volatility, and stagnating growth continue to dampen sentiment. However, there is no economic growth forecast for 2025. The consumer climate has risen for the third consecutive month, though the increase is moderate at 0.9 points. At -19.9 points, it has reached its highest level since November 2024, when it stood at -18.4 points. 'The level of consumer sentiment remains extremely low, and consumer uncertainty remains high,' said Rolf Burkl, consumer expert at the NIM . 'The unpredictable customs and trade policy of the US government, turbulence on the stock markets and fears of a third consecutive year of stagnation are reasons why the consumer climate remains weak. In view of the general economic situation, people seem to think it advisable to save.' Consumers' income expectations increase noticeably in May. The indicator gains 6.1 points, climbing to 10.4 points. This is the highest value since October 2024—when 13.7 points were measured. Compared to the same period last year, however, there was a small drop of 2.1 points. Consumers in Germany are increasingly optimistic about their income due to favourable wage agreements and easing inflation, which stood at 2.1 per cent in April. However, this has not translated into greater willingness to buy, which fell to -6.4 points amid concerns over trade policies and rising unemployment. Meanwhile, economic expectations rose for the fourth straight month, reaching 13.1 points—it's highest since April 2023. Despite this optimism, the German Council of Economic Experts forecasts no growth in 2025, with a modest 1 per cent rebound expected in 2026. The findings are drawn from the GfK Consumer Climate powered study, based on approximately 2,000 monthly consumer interviews carried out on behalf of the European Commission. Fibre2Fashion News Desk (SG)
Yahoo
16-05-2025
- Business
- Yahoo
WEN Q1 Earnings Call: Wendy's Maintains Guidance Amidst Consumer Headwinds and Strategic Initiatives
Fast-food chain Wendy's (NASDAQ:WEN) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.1% year on year to $523.5 million. Its non-GAAP profit of $0.20 per share was in line with analysts' consensus estimates. Is now the time to buy WEN? Find out in our full research report (it's free). Revenue: $523.5 million vs analyst estimates of $524.9 million (2.1% year-on-year decline, in line) Adjusted EPS: $0.20 vs analyst estimates of $0.20 (in line) Adjusted EBITDA: $124.5 million vs analyst estimates of $122.5 million (23.8% margin, 1.7% beat) Management lowered its full-year Adjusted EPS guidance to $0.95 at the midpoint, a 5% decrease Operating Margin: 15.9%, in line with the same quarter last year Free Cash Flow Margin: 12.9%, up from 10.5% in the same quarter last year Locations: 7,308 at quarter end, up from 7,248 in the same quarter last year Same-Store Sales fell 2.1% year on year (0.9% in the same quarter last year) Market Capitalization: $2.3 billion Wendy's leadership attributed its first quarter results to a combination of challenging consumer conditions, adverse winter weather, and the impact of new promotional efforts. CEO Kirk Tanner highlighted that while global same-store sales fell, the company maintained U.S. traffic and dollar share, driven by product innovation such as the Thin Mint Frosty and ongoing emphasis on value. He pointed to international growth, notably in Canada and new markets like Australia, as a bright spot in the quarter's performance. Looking ahead, management lowered its full-year adjusted EPS guidance, citing ongoing uncertainty in consumer demand and broader industry traffic softness. Tanner emphasized that Wendy's is prioritizing operational improvements, increased digital engagement, and menu innovation to offset these pressures. He explained, 'We are focused on controlling what we can control and adapting to the current environment through both value and innovation,' while reiterating the company's commitment to net unit growth and expanded international presence. Wendy's first quarter was influenced by macroeconomic pressures and strategic programming, with management focusing on menu innovation and operational improvements to drive future growth and maintain competitiveness. Menu Innovation and Collaborations: The launch of new Frosty flavors and collaborations with brands such as Girl Scouts and Takis helped boost customer traffic temporarily, with further product tie-ins planned for summer and fall. Operational Excellence Initiatives: The company rolled out new training programs, doubled in-restaurant field visits, and introduced operational tools like menu item labels and delivery scales to improve order accuracy and customer satisfaction. Technology Investments: Management accelerated the deployment of digital menu boards and AI-based order-taking, aiming to enhance personalization and drive higher digital sales, which reached over 20% of total sales for the first time. International Expansion: Over 60% of new restaurant openings occurred in international markets, with record growth in Canada and early success in Australia, reinforcing Wendy's strategy to expand its global footprint. Franchisee Support and Benchmarking: A new system for collecting and benchmarking franchisee financials at the restaurant level was introduced, intended to drive operational best practices and improve franchisee profitability. Management expects continued consumer uncertainty to impact sales, but believes menu innovation, technology investments, and international expansion will support gradual improvement through the year. Customer Value and Promotions: The 100 Days of Summer campaign and ongoing value offerings are designed to attract price-sensitive consumers and drive frequency, especially as industry-wide QSR traffic remains pressured. Digital and Operational Enhancements: Expansion of digital ordering, loyalty features, and AI-driven tools is expected to improve efficiency and customer engagement, contributing to higher average order values and productivity. International Growth Focus: The pipeline of new international units and development agreements in markets such as Mexico, Chile, and Australia is central to Wendy's long-term growth strategy, providing diversification from U.S. market headwinds. Jeffrey Bernstein (Barclays): Pressed on whether Wendy's value platform needs to be refreshed in light of consumer pressure; CEO Kirk Tanner stressed a balanced approach with ongoing innovation and weekly value deals. David Palmer (Evercore ISI): Asked where the biggest improvements in customer experience are expected; Tanner cited investments in order accuracy and hospitality through operational tools and field resources. Dennis Geiger (UBS): Inquired about franchisee demand and the development pipeline; Tanner expressed confidence in both international and domestic growth, emphasizing ongoing pipeline visibility beyond 2025. Jon Tower (Citi): Sought details on Q1's sales softness and income cohort trends; management noted broad-based pressure, especially among households earning below $75,000, while reaffirming investment in growth initiatives. Sara Senatore (Bank of America): Questioned the impact of reduced advertising spend; CFO Ken Cook said share was maintained and emphasized a focus on in-restaurant experience to drive frequency. In the coming quarters, the StockStory team will be monitoring (1) the effectiveness of Wendy's 100 Days of Summer campaign in driving guest traffic and frequency, (2) execution of international expansion and new unit openings, and (3) progress in digital engagement and operational improvements such as AI order-taking and accuracy tools. We will also track developments in the competitive landscape and consumer spending patterns, which could influence near-term performance. Wendy's currently trades at a forward P/E ratio of 11.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Business Times
16-05-2025
- Business
- Business Times
Australia: Shares hit over two-month high, RBA rate decision in focus
AUSTRALIAN shares jumped to an over two-month high on Friday, led by gains in banks and miners, ahead of the Reserve Bank of Australia's (RBA) policy decision next week, where the central bank is widely expected to cut interest rates. The S&P/ASX 200 index rose as much as 1.2 per cent to 8,398.2, its highest level since Feb 20, by 0029 GMT. The index was on track to log its eighth consecutive session of gains. The benchmark is up 1.8 per cent for the week, its best weekly performance since April 28. The RBA is expected to cut interest rates by 25 basis points on Tuesday, its second in over four years, and deliver two more cuts this year, a Reuters poll showed. Meanwhile, iron ore prices have been on a winning streak this week, thanks to a trade truce between China and the US that lifted hopes of stronger demand. On the local bourse, miners climbed 1.7 per cent, since China is Australia's largest trading partner. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The sub-index is on track to record its sixth straight weekly gain. Miners BHP Group, Rio Tinto and Fortescue added 0.8 per cent, 0.9 per cent and 0.9 per cent, respectively. Gold stocks advanced by 3.7 per cent. However, the sub-index lost 10.4 per cent this week. Gold miners Northern Star Resources and Genesis Minerals were up 3.6 per cent and 4.9 per cent, respectively. Evolution Mining rose 4.9 per cent and was among the top gainers on the benchmark index. Financials rose 1 per cent, with National Australia Bank, Westpac, ANZ and Commonwealth Bank of Australia rising between 1 per cent and 1.9 per cent. New Zealand's benchmark S&P/NZX 50 index fell 0.4 per cent to 12,834.33. Globally, Japan's Nikkei was down 0.1 per cent on Friday, while overnight the US S&P 500 ended 0.41 per cent higher and the Nasdaq closed down 0.18 per cent. REUTERS
Yahoo
15-05-2025
- Business
- Yahoo
BLDR Q1 Earnings Call: Management Lowers Guidance Amid Housing Market Headwinds
Building materials company Builders FirstSource (NYSE:BLDR) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 6% year on year to $3.66 billion. On the other hand, the company's full-year revenue guidance of $16.55 billion at the midpoint came in 0.9% below analysts' estimates. Its non-GAAP profit of $1.51 per share was 6.4% above analysts' consensus estimates. Is now the time to buy BLDR? Find out in our full research report (it's free). Revenue: $3.66 billion vs analyst estimates of $3.67 billion (6% year-on-year decline, in line) Adjusted EPS: $1.51 vs analyst estimates of $1.42 (6.4% beat) Adjusted EBITDA: $369.2 million vs analyst estimates of $377.5 million (10.1% margin, 2.2% miss) The company dropped its revenue guidance for the full year to $16.55 billion at the midpoint from $17 billion, a 2.6% decrease EBITDA guidance for the full year is $1.9 billion at the midpoint, below analyst estimates of $2.04 billion Operating Margin: 5%, down from 9.6% in the same quarter last year Free Cash Flow Margin: 0.9%, down from 5.8% in the same quarter last year Market Capitalization: $13.21 billion Builders FirstSource's first quarter results reflected persistent challenges across the housing construction market, as discussed by CEO Peter Jackson. Management attributed the year-on-year revenue decline to softer single-family and multifamily housing starts, lower average home values, and ongoing affordability issues for homebuyers. CFO Pete Beckmann highlighted operational adjustments, such as capacity realignment and expense controls, to offset the impact of reduced demand. Jackson emphasized continued investments in digital tools and value-added offerings, aiming to strengthen customer relationships and improve productivity, even as overall sales volumes declined. Discussing the company's outlook, management cited ongoing uncertainty in both the macroeconomic and industry environments. Beckmann explained that the reduced full-year revenue and EBITDA guidance was driven by weaker expectations for single-family housing starts, moderating multifamily activity, and anticipated tariff impacts on imported raw materials. Jackson admitted, 'We're not expecting a recovery in the broader market or from key customers,' and stressed that guidance assumes no substantial rebound in demand during the remainder of the year. Management described the outlook as largely seasonal, with growth in the second half dependent on acquisition contributions rather than a market recovery. Builders FirstSource's leadership discussed several operational and strategic themes impacting first quarter performance and future positioning. While headline revenue and margins fell, management focused on factors within their control and highlighted continued investments in core capabilities. Operational cost management: Management reported $17 million in productivity savings for the quarter, attributed to targeted supply chain initiatives, truss manufacturing efficiency, and improved fleet management. These efforts are intended to maintain flexibility and profitability in a subdued demand environment. Digital tools adoption: The company's BFS digital platform continued to gain traction among smaller builders, generating $19 million in incremental sales for the quarter. Management expects digital sales adoption to accelerate, aiming for $200 million in additional sales for the full year as the platform expands. Acquisition activity: Builders FirstSource completed two acquisitions in the quarter—Alpine Lumber and O.C. Cluss—expanding its presence in Colorado, New Mexico, and parts of the Northeast. Management described these deals as consistent with the company's strategy to grow value-added offerings and geographic reach. Product and market mix trends: Value-added product sales, particularly in multifamily, faced notable declines as activity normalized from prior-year highs. Management noted ongoing shifts toward smaller, simpler homes and lower-cost product categories in response to affordability pressures, affecting both volume and margin mix. Tariff and commodity headwinds: Leadership outlined expected annual tariff cost impacts of $175 million to $250 million, primarily on imported raw materials. While some costs are expected to be passed through to customers, management cautioned that the precise market impact remains uncertain and is not fully reflected in current guidance. Looking ahead, Builders FirstSource's management expects ongoing housing market softness, efforts to boost operational efficiency, and the impact of tariffs to shape performance for the remainder of the year. Housing demand uncertainty: Guidance assumes continued below-normal single-family starts and persistent weakness in multifamily activity, with management anticipating no significant rebound in new construction volumes during 2025. Operational efficiency and cost control: The company aims to deliver $70 million to $90 million in productivity savings for the year, relying on process optimization, technology investments (such as ERP rollout), and disciplined expense management to support margins amid lower volumes. Tariff and commodity cost pressures: Management anticipates tariffs on imported raw materials will create additional cost headwinds, and while some price increases may be passed to customers, there is uncertainty around the extent and timing of cost recovery, particularly as commodity prices fluctuate and builder affordability remains constrained. Matthew Bouley (Barclays): Asked about the company's approach to balancing market share versus gross margin in a declining housing market. Management stated they aim to defend share while maintaining disciplined pricing, expecting margins to drift lower but remain above most competitors. Michael Dahl (RBC Capital Markets): Questioned the sustainability of aggressive capital allocation given lower cash flows and higher leverage. Beckmann responded that the company will prioritize balance sheet strength and maintain its year-end leverage target, with M&A and buybacks evaluated opportunistically. Charles Perron-Piche (Goldman Sachs): Sought clarity on the impact of higher lumber prices and digital tool adoption targets. Management explained the product mix effect of commodity price changes and reiterated confidence in digital adoption via improved customer experience and targeted rollout. Trey Grooms (Stephens): Inquired about the company's appetite for further acquisitions and potential for network streamlining. Management said M&A activity will be limited to strategic opportunities and confirmed ongoing efforts to optimize the branch footprint in response to local market demand. Phil Ng (Jefferies): Asked about the company's ability to pass tariff-related cost increases to customers and the timeline for such impacts. Leadership responded that most tariffs should be passed through over time, but the exact market reaction and timing remain uncertain due to inventory dynamics and evolving policy. In the quarters ahead, the StockStory team will watch (1) trends in housing starts and builder sentiment as indicators for potential demand stabilization, (2) the pace and effectiveness of digital tool adoption among both smaller and larger builders, and (3) management's delivery of targeted productivity savings and cost containment in the face of continued market headwinds. The handling of tariff-related costs and the integration of recent acquisitions will also be important factors in tracking Builders FirstSource's execution. Builders FirstSource currently trades at a forward P/E ratio of 12.3×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
