The UK's blue-chip FTSE 100 index experienced a decline of 1.21% in Tuesday's closing trade as investors took stock of the latest batch of corporate earnings alongside recent retail sales figures. Recent data from the British Retail Consortium indicated a noticeable deceleration in retail sales growth, registering only a 0.9% increase on a like-for-like basis in February, a stark contrast to the 2.5% growth seen in the previous month.
This figure fell short of the consensus forecast which projected a 2.4% rise. The modest sales uptick observed was largely ascribed to Valentine’s Day spending occurring within an otherwise lackluster consumer sales landscape, aggravated by a prevailing cost-of-living crisis. "Consumers remain cautious with their spending and many are continuing to prioritize saving, travel and experiences," stated Linda Ellett, KPMG's UK head of consumer, retail and leisure.
"Nervousness about the economy is deferring other big ticket purchasing, but occasions and offers are still tempting shoppers into some impulsive spending." In the corporate arena, the homebuilder Persimmon emerged as the top gainer on the FTSE 100, climbing 5.47% after reporting a profit attributable to equity holders of the parent company totaling 267.1 million pounds for the 12 months ending December 31, 2024, an increase from 255.4 million pounds, buoyed by revenue growth. "The underlying market fundamentals remain strong, and we are encouraged by the improved sales rates observed in the early weeks of this year," commented Group Chief Executive Dean Finch.
"With our robust platform established, we are targeting further growth this year and are confident that the business will enhance margins, returns, and shareholder value in the medium term." Conversely, Spirax Group experienced a significant share price plunge of 3.91% after reporting a decline in full-year 2024 revenue, which fell to 1.67 billion pounds from 1.68 billion pounds, impacted by a challenging trading environment.
"Being cognizant of the outlook for industrial production, I remain confident in the execution of our strategy as well as the resilience of our business model, which collectively will facilitate organic sales growth that surpasses industrial production trends and achieve mid-single digit organic profit growth in 2025," remarked Nimesh Patel, Group CEO..