Greggs shares tank as sales slide on 'challenging' Jan weather
By Frank Prenesti
Date: Tuesday 04 Mar 2025
(Sharecast News) - Shares in Greggs slumped on Tuesday as sales slowed again at the start of the new financial year, with the bakery chain citing "challenging" weather conditions in January.
Like-for-like sales in company-managed shops increased by 1.7% year-on-year in the first nine weeks of 2025. Challenging weather conditions in January were followed by improved trading in February, Greggs said on Tuesday.
"Looking ahead to 2025, the macroeconomic landscape remains tough. Inflation remains elevated, and many of our customers continue to worry about the cost of living," said chief executive Roisin Currie.
The company on Tuesday said total sales were up 11.3% in the 12 months to December 28, passing £2bn for the first time, with LFL sales in company-managed shops up 5.5% year-on-year. Pre-tax profit came in at £204m, an increase of 8.3%.
Greggs in January reported a slowdown in sales growth to 2.5% for the fourth quarter as weaker consumer confidence dented footfall on the high street, sparking a slump in the company's share price.
The company, famed for its sausage rolls and vegan range, has been expanding its menu and offers later opening hours along with online deliveries via Just Eat and Uber Eats.
"Greggs has limited influence over consumer sentiment but continues to perform well in a tougher environment, with its value-focused offering helping to maintain market share," said Hargreaves Lansdown analyst Matt Britzman.
"At best, like-for-like sales growth of 1.7% over the past couple of months can be described as robust, and management's comments that trends improved in February are fairly encouraging. However, 2025 is shaping up to be a tricky year; consumers are hardly flush with cash, and costs are set to rise as (Finance Minister) Rachel Reeves's budget measures take effect."
"It's good news, then, that the company's growth engines - store expansion, delivery options, evening trade, and digital channels - are all showing continued momentum, giving investors some hope that Greggs can keep pushing forward despite sector headwinds."
Reporting by Frank Prenesti for Sharecast.com
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