Latest news with #WilliamWoods
RTÉ News
2 days ago
- Business
- RTÉ News
Zara owner Inditex reports slower start to summer trading
Zara owner Inditex missed expectations for first-quarter sales and early summer trading today, as tariff fallout complicated the fast-fashion retailer's efforts to maintain strong growth. Concerns about resurgent inflation and an economic slowdown triggered by US President Donald Trump's erratic tariff rollout have already dampened shopping enthusiasm in the US and other major consumer markets. Inditex's competitors have also experienced a sluggish spring. The company reported a slower start to its summer sales, with currency-adjusted revenue growth of 6% from May 1 to June 9, compared to analysts' expectations of 7.3%, and down from 12% growth in the same period a year ago. Revenues for its first quarter ending April 30 were €8.27 billion, missing analysts' average estimate of €8.36 billion, according to an LSEG poll. Net income increased 0.8% in the quarter, to €1.3 billion. Inditex shares were down 4% in early trading, making it the second-worst performer on the Stoxx 600 index. Inditex did not provide a reason for the weaker sales growth. In a statement, it called its performance "solid", having labelled it "very robust" at its previous results announcement in March, when annual sales were up 10.5%. "Overall weaker sales growth is a combination of demand volatility in Q1, but we need to take a step back and look at mid single-digit growth as actually being quite good in this environment," said Bernstein analyst William Woods. Inditex rival H&M's sales have also struggled, growing by just 1% in March compared to 4% in the same time a year earlier. Its December-February revenue grew by 2%, below analyst forecasts. Rainy weather in Spain, which accounts for 15% of Inditex's global sales, has also likely hurt the company's performance, according to Bernstein analysts. Spain experienced one of its wettest ever springs, with Madrid recording three times its usual levels of rainfall for the season. With volatility in foreign exchange markets driven by trade risks, Inditex said currency fluctuations will have a bigger impact than previously expected, predicting a 3% negative effect on its 2025 sales, compared with the 1% it flagged in March.
Business Recorder
2 days ago
- Business
- Business Recorder
Zara owner Inditex's early summer sales disappoint as tariffs fuel uncertainty
MADRID: Zara owner Inditex missed expectations for first-quarter sales and early summer trading on Wednesday, as tariff fallout complicated the fast-fashion retailer's efforts to maintain strong growth. Concerns about resurgent inflation and an economic slowdown triggered by U.S. President Donald Trump's erratic tariff rollout have already dampened shopping enthusiasm in the United States and other major consumer markets. Inditex's competitors have also experienced a sluggish spring. The company reported a slower start to its summer sales, with currency-adjusted revenue growth of 6% from May 1 to June 9, compared to analysts' expectations of 7.3%, and down from 12% growth in the same period a year ago. Revenues for its first quarter ending April 30 were 8.27 billion euros ($9.44 billion), missing analysts' average estimate of 8.36 billion euros, according to an LSEG poll. Net income increased 0.8% in the quarter, to 1.3 billion euros. Inditex shares were down 4% in early trading, making it the second-worst performer on the Stoxx 600 index. Inditex did not provide a reason for the weaker sales growth. In a statement, it called its performance 'solid', having labelled it 'very robust' at its previous results announcement in March, when annual sales were up 10.5%. 'Overall weaker sales growth is a combination of demand volatility in Q1, but we need to take a step back and look at mid single-digit growth as actually being quite good in this environment,' said Bernstein analyst William Woods. Inditex rival H&M's sales have also struggled, growing by just 1% in March compared to 4% in the same period a year earlier. Its December-February revenue grew by 2%, below analyst forecasts. Rainy weather in Spain, which accounts for 15% of Inditex's global sales, has also likely hurt the company's performance, according to Bernstein analysts. The Dow rose a quarter of one percent, the S&P 500 added half a percent, Spain experienced one of its wettest ever springs, with Madrid recording three times its usual levels of rainfall for the season. With volatility in foreign exchange markets driven by trade risks, Inditex said currency fluctuations will have a bigger impact than previously expected, predicting a 3% negative effect on its 2025 sales, compared with the 1% it flagged in March.
Reuters
14-04-2025
- Business
- Reuters
Sainsbury's to set out stall, with UK grocers on price war alert
Summary Companies LONDON, April 14 (Reuters) - When Sainsbury's (SBRY.L), opens new tab reports annual results on Thursday all eyes will be on whether Britain's second-largest food retailer follows industry leader Tesco (TSCO.L), opens new tab in forecasting lower profits this year to give it the flexibility to cut prices. Last month, privately owned Asda, the number three player, flagged the start of a potential price war, saying it would take a hit to profits to finance a campaign of price cuts aimed at reversing a slide in its share of Britain's grocery market. Tesco responded last week, forecasting 2025/26 adjusted operating profit in a range up to 500 million pounds ($654 million) below analysts' consensus expectations prior to its update, sending its shares down 6% and Sainsbury's down 3%. Tesco CEO Ken Murphy said he was sending a message: "Whatever the competitive environment and whatever comes our way, we're capable of dealing with it." Sainsbury's, which has a UK grocery market share of 15%, has guided to a 2024/25 retail underlying operating profit of 1.03 billion pounds, representing growth of about 7%. For 2025/26 analysts are currently on average forecasting further growth to 1.08 billion pounds, but that could be under threat if, as seems likely, Sainsbury's follows Tesco's conservative approach. Bernstein analyst William Woods likened the current state of UK food retail to an old Western movie. "Each retailer gently ratchets up the pressure, unholstering their gun, taking aim and waiting to see who, if anyone, starts shooting," he said. But he added that while there has been some intensification in competitive positioning in the market, there is currently no irrational price war and he does not expect one. Sainsbury's has won market share over the last year, thanks to a strategy of matching discounter Aldi's prices on key items and providing better prices for members of its Nectar loyalty scheme, financed by cutting costs. About a quarter of Sainsbury's sales are from non-food products versus about 7% for Tesco, making it more vulnerable to any knock-on effects on global shipping from the hike in U.S. tariffs.
