Pub chain Fuller’s blames train strikes for fall in sales over Christmas period
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Fuller’s is issuing a profit warning as the pub owner blames train strikes for poor sales over the Christmas period
- Fuller’s said it took a £4 million sales hit, which it attributed to train strikes
- Shares in the pub chain are down 31% over the past year
Fuller, Smith & Turner has warned its full-year earnings will fall below expectations as it blames train strikes for weak sales over the holiday season.
The pub chain, which has a large presence in London and the South East, claimed it had made £4 million in sales since October as a result of union action.
Sales over the Christmas and New Year period were 38 per cent higher than last year, when pubs were still reeling from the effects of the Omicron variant, and were down 5 per cent from 2019.
Pub chain Fuller’s issues profit warning, blaming train strikes for £4m loss in turnover
Shares in Fuller’s have struggled over the past year and are down more than 31 percent, losing 2.65 percent today.
The group was also hit by the impact of high inflation, which it says continued to affect operating costs and margins.
“While some of these costs may be temporary in nature, others – such as the increase in the national living wage – are more important and we are focused on taking action to reduce these costs where possible,” said CEO Simon Emeny.
But the group hopes more office workers and tourists will return to the capital this year and remains confident in its long-term prospects.
“While strikes and the cost-of-living crisis pose short-term obstacles to our post-pandemic recovery, we remain confident in the pub’s resilience and future opportunities for Fuller’s. We are a long-term company and we will continue to invest in our people, in our assets and in providing excellent reasons for our customers to visit,” said Emeny.
“These are challenging times, but our fundamental strengths of a talented and experienced team, high-quality, well-invested, majority ownership and healthy balance sheet are the foundation for us to make the right long-term decisions amid short-term turbulence during this period.”
Fuller’s will look for opportunities to make up some of the lost revenue later this year, AJ Bell investment director Russ Mold said.
“The King’s coronation in May will add another holiday to the calendar and give the public a reason to get out of the house and celebrate with friends and family, a day that is likely to be a major tailwind to the earnings of Fuller.
‘But outside of that event, the pub company hopes for lots of sunny weather in 2023, so that the beer gardens are full. It will also hope the UK doesn’t slip into a nasty recession so that people can still afford to go to the pubs or feel confident enough to spend money on a pie and a pint.’