Studio Retail Group adjusts full year profits as savvy shoppers buy less

X The Business Desk

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Lancashire’s online shopping firm, Studio Retail Group, has adjusted its full year pre-tax profits as consumers become more selective about their shopping this year.

The Accrington-headquartered group said it expects full year PBT to be around £35m-£40m compared to previously stated £42m-£45m.

The company said its strategy for growth “remains intact” and is still aiming to reach its £1bn revenue goal in the medium term.

In a trading update this morning for the 26 weeks ending September 24, it reported revenues of £239.6m, up from £232m for the same period last year.

Pre-tax profits climbed to £26.5m, a 67% jump on the prior year’s £15.9m.

During the period it also completed the sale of Findel Education for £30m.

The group warned that it was expecting challenges from rising costs and that there had been some supply disruption, but it had taken steps to secure stock early. This has meant it has higher levels of stock than last year and has “good tracking in place” on all remaining deliveries due in the next couple of weeks.

While typically the group delivers around 40% of its full-year product sales during Q3, the period that includes Black Friday and Christmas, sales have been slower than expected as customers buying habits have changed, meaning they are more selective about their purchases.

Paul Kendrick, Group CEO, said: “I am pleased with how the business has built on the success seen during FY21 in delivering a solid trading performance in the first half of the year.

“There are undoubtedly more near-term headwinds for all retailers, but we are confident that the proactive decisions we have taken will leave us well placed to navigate these.

“We continue to focus on our strategy set out in June, and our objective remains to drive growth with Studio’s outstanding digital value proposition for its customers at the forefront.

“We remain confident in our medium-term targets.”