Latest news with #CharlieHuggins
Bloomberg
29-05-2025
- Automotive
- Bloomberg
UK's Used-Car Demand Boom Spells Bad News for Auto Trader Shares
Auto Trader Group Plc shares slumped on a surprising trigger for the vehicle marketplace's cautious earnings outlook: buoyant used car demand. 'Cars are selling like hotcakes, reducing the need for retailers to buy advertising slots from Auto Trader,' said Charlie Huggins at investment services firm Wealth Club following the Manchester, England-based company's full-year results.
The National
19-05-2025
- Business
- The National
Scotch whisky giant launches £375m cutting drive as US tariffs hit
The owner of Johnnie Walker whisky – as well as Lagavulin, Singleton, and Talisker among others – said it would be impacted by a 10% tariff on UK imports into the US, which were untouched by the UK Government's trade agreements with Donald Trump. It said it believes its current plans will mitigate around half of the impact of these higher costs on its profit and it will work on further measures to offset the impact. However, it reflects an improving outlook after Diageo said in February that it was bracing for a 200 million US dollar (£161m) hit to profits from tariffs. READ MORE: How Donald Trump's tariffs have impacted Scotch whisky – in figures The firm was set to face a significant knock from proposed tariffs on US imports from Canada and Mexico, but was buoyed by an exemption on alcoholic drinks in March. Diageo also stressed on Monday that it will not be affected by tariffs between the US and China. It came as the company launched a 500 million dollar (£375.6m) cost-saving programme, in order to support further investment and improving its leverage. The London-listed firm, which also makes Guinness, Gordon's gin, and Baileys, said it will shift to 'a more agile global operating model' as it seeks to improve its cash flow. Meanwhile, the company reported that net sales grew by 2.9% to 4.37 billion dollars (£3.28bn) for the three months to March 31, amid a boost from continued strong Guinness sales. In Europe, sales dipped 1.3% for the quarter as higher Guinness sales were offset by 'further softness' in spirits across key markets. Organic spirit sales were weaker year-on-year in the region, despite increased demand for tequila. However, sales in North America grew by 5.9% amid strong shipments of US spirits. Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said that this was a temporary boost in sales that was explained by people stocking up ahead of Trump's tariffs coming into effect. 'These impacts are estimated to have boosted sales by 4% in the third quarter and are expected to largely reverse in the fourth quarter,' Huggins said. 'Even so, there are some positives for investors to take away from this statement. 'Despite the challenging market backdrop, Diageo has reiterated its full-year guidance. The impact of tariffs appears manageable, for now at least. READ MORE: Co-op board votes to remove all Israeli products from shelves 'In addition, Diageo has launched a productivity programme, aimed at boosting cash flow and margins. This should help get profit moving in the right direction, even if tough trading conditions persist.' Debra Crew, chief executive of Diageo, said: 'In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 2025. 'We also reiterated our organic operating profit outlook for fiscal 2025, including the impact of tariffs based on what we know at this time. 'We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market. 'We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery.'
Daily Mail
15-05-2025
- Business
- Daily Mail
Major UK retailer to axe 1,700 jobs in bid to cut costs
Burberry plans to cut a up to 1,700 jobs worldwide as part of efforts to slash staff costs and return the luxury fashion brand to a profit. The retailer said it was upping its cost-cutting target to £100million of savings per year by the 2027 financial year after posting a £3million reported operating loss for the year to the end of March. It comes as luxury brands around the world continue to struggle against subdued demand, rising costs and economic uncertainty. Burberry said savings will partly come from a reduction in 'people-related costs', the firm said, which could affect around 1,700 jobs globally over the two-year programme. The latest cost-cutting drive would reduce Burberry workforce by nearly one-fifth. The company said the 'organisational changes' were aimed at ensuring Burberry was 'fit for the future'. Burberry shares jumped 6.75 per cent or 55.80p to 882.60p following the update. In the last year, the retailer's shares have fallen by around a quarter. 'Investors have seen several failed turnaround plans from Burberry in recent years. This one feels like a last chance saloon', Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said. Burberry has been battling profit warnings, dwindling footfall and lower sales. It is pinning its hopes on a back to basics approach and plans to focus on its popular trench coat and scarves ranges. Schulman took over last year and shifted Burberry's strategy and marketing to re-focus more on its traditional trench coats and scarves after the brand was bruised by product missteps, excessive price hikes, and a broader luxury downturn. On Wednesday, Schulman unveiled plans for a further £60million of cost cutting on top of £40million already announced, making £100million savings in total over the next two years. The savings will cost approximately £80million to implement. Burberry reported a 17 per cent drop in revenue to £2.5billion for the year to 19 March. It made an operating loss of £3million against a £418million profit the previous year. However, this was much better than the £7million loss forecast by analysts. The group made a pre-tax loss of £66 million for the 12 months to 29 March, compared with a £383million profit in the previous year. Fourth-quarter comparable sales were down 6 per cent, better than analysts' average forecast for a 7 per cent decline. The group said it had endured a 'challenging first half' and warned of a 'difficult macroeconomic backdrop.' But, Schulman said in a statement: 'With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store.' Sales in the Americas and the Europe, Middle East, India and Africa region both fell by 4 per cent compared with last year, while sales in Asia Pacific were down 9 per cent. Richard Hunter, head of markets at Interactive Investor, said: 'Burberry will want to consign the past year to the history books as soon as possible, when the change of chief executive, suspension of the dividend and first-half loss sent the shares into a tailspin. 'The group responded immediately and decisively, but the new strategy will take time to filter through.' He added: 'Overall, the group is far from being out of the woods, but the immediate impact of 'Burberry Forward' is a highly encouraging sign. 'That being said, the impact of the tariffs, even at the revised lower levels, will need to be closely monitored and there will need to be further proof that the current momentum can be maintained. 'The share price has much ground to recover, having fallen by 29 per cent over the last year as compared to a gain of 0.7 per cent for the wider FTSE 250, and by 67 per cent over the last two. 'While the market consensus of the shares as a hold could indicate some investor reticence to jump on board the turnaround story just yet, the initial share price reaction to these numbers reflects a rare round of applause on the clear progress which has already been made.'
Irish Times
29-04-2025
- Business
- Irish Times
Penneys owner AB Foods slumps amid weak earnings
Penneys owner Associated British Foods reported a 10 per cent fall in first-half profit on Tuesday, hurt by a loss in its sugar division, sending its shares down 8 per cent in early trading. The group however kept its guidance for 'low single digit' annual growth at its Primark clothing unit, driven by new stores in continental Europe and the United States, offsetting weaker sales in the UK and Ireland. Sales at Primark, whose boss Paul Marchant resigned last month over inappropriate behaviour, rose 1 per cent to £4.5 billion (€5.3 billion). 'While we continue to assume our trading in the UK remains challenging in H2 2025, there have been some early signs of improvement in recent weeks,' the company said. READ MORE 'There is not much to celebrate in these results from AB Foods,' said Charlie Huggins, a portfolio manager at Wealth Club. 'Primark's sales performance in the UK and Ireland also continues to disappoint. Like-for-like sales fell by 6 per cent, worse than competitors, meaning Primark lost market share in the period.' AB Foods said it expected its sugar business to make a full-year adjusted operating loss of up to £40 million, reflecting persistent low European sugar prices, a loss at its UK bioethanol business, Vivergo, and challenges in Tanzania and South Africa. It said it was close to completing a review of its Spanish sugar business Azucarera, and it was considering mothballing or closing the Vivergo plant unless there were changes to UK bioethanol regulations. The group maintained guidance for its grocery, ingredients and agriculture businesses. It said adjusted operating profit, its preferred profit measure, was £835 million in the six months to March 1, on flat revenue of £9.5 billion on a constant currency basis. Shares in AB Foods fell 8 per cent, wiping out most of the 10 per cent gain recorded so far this year. --Reuters
Yahoo
28-03-2025
- Business
- Yahoo
Strong retail sales growth in February point to "green shoots" in the economy
Nervous investors piling into the safe haven of gold jewellery 'in uncertain times' helped give a welcome boost retail sales last month, according to latest official figures. Retail sales volumes rose by a better than expected 1% in February following a surge of 1.4% in January, according to the Office for National Statistics (ONS). Strong trading in the build up to Valentine's Day on February 14 is also thought to have helped the high street. A second month of robust retail sales will raise hope in Government that rising real incomes are starting to persuade consumers to spend again, helping to kick-start economic growth. Separate ONS figures showed consumers' real incomes surged 1.9% in the fourth quarter and 4.2% over 2024 as a whole the fastest growth in nine years. The figures show supermarket sales volumes fell back following a strong rise in January but other categories of shops doing well. Sales volumes rose by 0.3% over the three months to February and by 2.0% when compared with the three months to February 2024. But volumes were down by 0.4%, compared with their pre-pandemic level in February 2020. Sales at non-food stores rose by a healthy 3.1% over the month to their highest level since March 2022. Household goods stores rose by 6.8%, their largest monthly rise since April 2021, with hardware stores having the largest upward contribution. Watch and jewellery stores grew strongly over the month with retailers reporting 'increased demand for gold because of wider economic uncertainty. ' Clothing store volumes also rose in February 2025, as retailers slashed prices, but did not fully recover from a heavy 2.7% fall in January. Matt Jeffers, retail strategy and consulting managing director for Accenture in the UK & Ireland said: "Retailers felt the love in February, as Valentine's Day helped push sales up for a second consecutive month. 'Non food stores, including jewellery, clothing and hardware stores rose strongly, while food volumes bucked the trend and fell over the month. ' Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club said: "Retail sales volumes came in better than expected in February. The trends from last month effectively reversed with food sales falling after a very strong January and non-food categories rebounding following last month's weakness. 'These figures, along with yesterday's better-than-expected results from retail bellwether Next, indicate that consumers are still feeling confident enough to spend despite the gloomy economic headlines. However, in order to get consumers to part with their cash, retailers are having to work harder than ever before. This means increased levels of discounting - a good way to drive sales in the short term, but not necessarily great for profit margins."
