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Yahoo
3 days ago
- Business
- Yahoo
Matalan delivers FY25 EBITDA and gross margin growth
UK fashion and homeware retailer Matalan has reported a 6% increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to £56m and a 3% improvement in gross margin to £510m ($689.4m) in the fiscal year 2025 (FY25). Despite a 9% drop in total revenue to £985m, the company has focused on profitability over sales growth. This has seen improvement in the second half of the fiscal year, especially in the fourth quarter (Q4), with EBITDA rising by £11m. Matalan has secured additional funding of £25m from existing core investors, which has enabled the acceleration of its transformation plan. The company acknowledges that more work is needed to improve womenswear and homeware. Efforts to source quality fabrics and launch more considered ranges have been part of the strategy to meet key customer demands. The company completed 12 store refits in FY25. Matalan executive chair Karl-Heinz Holland stated: 'With a clear focus on maintaining profitability, we have delivered EBITDA growth. Our store investment plan is delivering results even better than we expected, and we're making good headway on our plan to open ten new stores and upgrade 30 existing locations in FY26.' The company is also investing in its digital presence with the launch of an app and has made improvements to its Knowsley distribution centre for improved supply chain efficiency. However, its management maintains a cautious outlook for the remainder of the financial year, given the 'uncertain global macroeconomic backdrop' and 'a more challenging UK consumer environment'. Holland added: 'While we started the new financial year with positive momentum, we continue to operate in an increasingly competitive market and uncertain macroeconomic conditions. Against this backdrop, we remain mindful of the tough operating environment and know there is much more to do to complete our transformation. At the same time, we are confident in the strength of the Matalan brand and the opportunities ahead, and believe the business is well positioned to continue to transform and grow its profitability.' In early June 2025, the company announced the implementation of the VisualStore commerce platform, developed by Toshiba Global Commerce Solutions, for faster, smoother and connected shopping across multiple channels. "Matalan delivers FY25 EBITDA and gross margin growth" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Home Decor Giant Struggles with Tariff Pressures
Retail sellers have been in inconsistent territory lately, as buying trends and consumer sentiment shifts reflect an uncertain economy. Retail Insight Network recently suggested that, in the coming months, retailers will watch closely 'as the effects of tariffs, inflation, and interest rates continue to shape purchasing patterns.' And for one major purveyor of home goods, it seems all of these issues have been problematic – so much so that it's filing for bankruptcy. Most Read on IEN: Auto Giant Files for Bankruptcy, Blames Tariffs Ship Carrying 3,000 Vehicles Abandoned in Pacific Ocean Yaskawa Moving Headquarters from Illinois to Wisconsin PODCAST: Deere Clears the Air; Battery Factory Halted; P&G Cuts 7,000 At Home is a retailer that was first established way back in 1979 and has grown significantly since. The brand was acquired a few years back by a private equity firm for $2.8 billion and operates more than 260 stores with 7,000+ employees. So why is At Home filing Chapter 11? The company says that after gaining a boost from pandemic spending, it was saddled with heavy freight costs and supply chain disruptions. As demand started to wane due to inflation, the business accumulated some $2 billion debt. Company leaders say today's consumer spends less than they did a few years back, due to reduced confidence and economic uncertainty. The other issue, said At Home, is tariffs: the company sources 90% of its goods from overseas, according to Retail Dive, and this volatility of the current environment added significant pressure at a time when At Home was trying to solve its other problems. So, instead, the problems will be addressed through the bankruptcy proceedings: according to reports, its $2 billion in debt will be wiped out based on agreements that have been reached with many lenders. The home decor and furniture seller will also close 26 stores. Brad Weston, CEO of At Home said the company's recent efforts "will improve [its] ability to compete in the marketplace in the face of continued volatility and increase the resilience of [the] business for the long term." That said, some experts are less optimistic about the path forward for At Home. CBS News quoted Neil Saunders, managing director of GlobalData, who said that even if the retailer is able to tackle its debt, the dynamics that are contributing to the purchasing slowdown are 'unlikely to change in the near term.' Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Shein's transport carbon emissions rise in 2024
Online fast-fashion retailer Shein's 2024 sustainability report indicates a 13.7% rise in carbon emissions from transporting its products. The retailer also disclosed that its 2023 transport emissions were 18% higher than previous estimates following a recalculation. The recalculated 2023 emissions, previously reported at 6.35 million tonnes (mt), reflect an updated methodology. The company is shifting towards producing, packaging and shipping closer to its customers to reduce emissions and improve efficiency. The company states that its strategic approach to reducing emissions is concentrated on the two categories that contribute most significantly to its carbon footprint: purchased goods and services, and upstream transportation and distribution. These sectors are jointly responsible for 96% of its emissions, according to its short-term goals set for 2024. In addressing transportation and distribution emissions, Shein will implement measures in two key areas. The first is minimising transportation distances. It plans to refine the company's global logistics network and enhance route planning to favour land, sea or combined transport methods over air freight. The goal is to localise production, packaging and shipping processes in proximity to the customer base. This strategy is intended not only to reduce emissions but also to cut down on delivery times and shipping expenses. The second area is the enhancement of transport efficiency. It aims to transport its products more efficiently by adopting vehicles with lower emissions, such as electric or hybrid options, and by optimising load and packaging efficiency, maximising the capacity of each shipment and decreasing the total number of shipments. The company's emissions reduction targets, which havea been approved by the Science-Based Targets Initiative (SBTi), aim for a 25% reduction in its Scope 3 emissions [indirect greenhouse gas emissions that occur in a company's value chain, but are not directly controlled by the company] by 2030 from 2023 levels. In addressing supply chain concerns, Shein terminated 12 supplier relationships in 2024 due to policy violations - an increase from five in 2023. The company also conducted 4,288 on-site audits of suppliers and subcontractors in China, up from 3,990 the previous year. "Shein's transport carbon emissions rise in 2024" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-06-2025
- Business
- Yahoo
Victoria's Secret exceeds Q1 FY25 expectations
US-based fashion and beauty retailer Victoria's Secret has seen its sales and operating income in the first quarter (Q1) of 2025 surpassing expectations and reiterated its full-year sales forecast. The company posted net sales of $1.35bn, which aligns with the upper end of the company's guidance range and remained flat year-on-year (YoY). Despite this steady performance, the company experienced a 1% decline in total comparable sales during the same period. The retailer reported an operating income of $20m for Q1 2025, a decrease from the $26m reported in Q1 of the previous year. Victoria's Secret also posted a net loss of $2m - an improvement compared to its net loss of $4m in Q1 2024. Despite the cyber incident that took place in May, Victoria's Secret did not experience significant operational disruptions in Q1. However, the company has faced, and may continue to face, costs and financial consequences associated with the incident. These could adversely affect its financial outcomes, potentially impacting results for Q2 of fiscal 2025. The release of the company's first-quarter earnings was postponed due to a security incident that disrupted its information technology systems. Victoria's Secret chief financial officer Scott Sekella stated: 'Though we recognise the macro environment is uncertain, we will continue to be disciplined in controlling costs and will remain agile, reading and reacting to what the customer is telling us to ensure we are building upon our solid foundation and realising the full potential of our globally recognised brands.' In Q2 2025, Victoria's Secret forecasts net sales between $1.38bn and $1.41bn - a slight decrease from the $1.417bn recorded in the Q2 2024. The company anticipates adjusted operating income for Q2 to be between $15m and $35m, with adjusted net income per diluted share estimated to fall between $0 and $0.15. Victoria's Secret is maintaining its forecasted net sales range of $6.2bn to $6.3bn for the full year of 2025. However, the company has adjusted its expected operating income, now anticipating it to be between $270m and $320m, down from the previously projected range of $300m to $350m. This revision takes into account an updated estimated net tariff impact of approximately $50m for the fiscal year. Victoria's Secret CEO Hillary Super stated: 'I am pleased with the strength the business demonstrated during the March and April timeframe, which included continued momentum in our powerhouse beauty business, ongoing strength in PINK apparel, and newness in sport and swim as we reclaim our position as a full lifestyle brand.' "Victoria's Secret exceeds Q1 FY25 expectations" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
GameStop sees 17% dip in Q1 2025 net sales
US videogame and merchandise retailer GameStop has announced its financial results for the first quarter (Q1) ended 3 May 2025, revealing net sales of $732.4m, down from $881.8m in the same period of 2024. The company has consistently faced challenges due to a shift in consumer habits, moving from buying physical games to preferring digital downloads, streaming services and online purchases. GameStop observed a shift in sales mix between the period. Hardware and accessories experienced a drop in net sales and their percentage of total sales decreased from 57.3% to 47.1%. Software sales also saw a reduction in their share of total sales from 27.2% to 24%, while collectibles experienced an increase in net sales and their share of total sales. After the end of the quarter, GameStop completed the divestiture of its Canadian operations on 4 May. The company also purchased 4,710 Bitcoin between 3 May and 10 June, using cash. The company has seen a significant reduction in operating loss, down to $10.8m for the period, compared to $50.6m in Q1 2024. It transitioned from a net loss of $32.3m for Q1 2024 to a net income of $44.8m in Q1 2025. The operating loss includes $35.5m of impairment charges connected to international restructuring efforts. The company's selling, general and administrative expenses decreased to $228.1m from $295.1m year-on-year. When adjusting for impairment charges and other items, GameStop's operating income stood at $27.5m, compared to an adjusted operating loss of $55m in Q1 2024. The company's liquidity position has also strengthened, with cash, cash equivalents and marketable securities totalling $6.4bn at the end of the quarter, up from $1bn at the close of the previous year's first quarter. In the quarter, the company's management agreed to a plan to offload its operations in France. The sale is expected to complete during the fiscal year 2025. "GameStop sees 17% dip in Q1 2025 net sales" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
