Studio Retail Group H1 profits widen, but warns of ‘challenging’ Q3 trading conditions

Studio Retail Group has reported an increase in sales and profitability in the first half of the year, but said it faces “challenging trading conditions” in the current quarter.

In the 26 weeks to September 24, the group reported revenue of 239.6 million pounds, up 3.2 percent from the year before, and up 32 percent compared to two years ago following a strong FY21.

Product revenue at the group’s core business, Studio, increased by 0.3 percent compared to last year, while the group’s Financial Services revenue was up by 11.3 percent.

Studio Retail Group's adjusted profit before tax increased 36 percent to 23.7 million pounds in the period.

Challenges ahead

But the group, formerly known as Findel, warned it faces “challenging” conditions in the third quarter linked to global supply chain issues, and has downgraded its full-year profit guidance.

The retailer now expects to make a pre-tax profit for the year of between 35 million pounds and 40 million pounds, down from a previous estimate of 42 million pounds to 45 million pounds.

CEO Paul Kendrick said he was pleased with the group’s “solid trading performance” in the first half, but noted there will “undoubtedly” be more near-term headwinds.

Despite that, the group is “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,” Kendrick said.