Whitbread Drops, Hays Slumps, Richemont Down

On this episode of Stock Movers:
-Whitbread reported comparable sales for the first quarter of -1%.

- Hays slumps as much as 20%, the most in nine years, sending the staffing firm’s shares to their lowest since October 2008. The company released an unscheduled update, saying that current tough market conditions would persist into FY26, with permanent recruitment activity levels especially weak.

- European luxury stocks drop, led by Richemont and Swatch, after a report showed Swiss watch exports fell 9.5% in May, driven by US downturn following a strong month of April.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:17):
Let's have a look at the stocks on the move
today here in Europe. I'm Caroline Hepgar with Tom McKenzie
and we're joined by Bloomberg's Equities with Ported Joe Eastern
Morning Joe. Let's start with the hospitality group Whitbread Everything Premiere.
But the share price it's seen.

Speaker 1 (00:32):
Yes, full credit to Lenny Henry for that on I
think so he gets a shout out to Whipbreade So
Whipbread shares they're down two point seven percent this morning,
this after an update from the Premier in owner.

Speaker 3 (00:45):
Now.

Speaker 1 (00:46):
Interestingly, it is the UK that's seeing the weak markets.
The UK sales down around two percent in the latest
court to some of their other regions actually doing pretty well.
Germany had a big jump in their market revenue, so
German up around thirteen percent, but kind of the UK
woes continuing. It has been weak before, we sort of

(01:07):
drop down in some of their summer volumes last year
and it looks like that continues. But I think, you know,
given the weather at the moment, surely those UK staycations
are going to be popular over the next month or so,
so maybe they'll get a.

Speaker 3 (01:20):
Boost coming out in London today.

Speaker 4 (01:22):
Who needs Malaga?

Speaker 1 (01:23):
No exactly, it's just me me. You can swapt Malaga
for Margate, you know, perfect, that works.

Speaker 4 (01:30):
Joe Joe's heading to the beach this weekend. Clearly that
the pubs will be will be busy as well, won't
they a bit of a bit of a bit of
a boost there to uh to the to the whining
and dining sector. But there is a bit of a
theme because in terms of in terms of the UK
and some challenges, recruiters has always a kind of really
good gauge in terms of what's happening in the labor market.

(01:51):
We know that on a macro level the jobs market
here unfortunately, is starting to soften a bit. Is this
is the is the is the slump in the stock
price for for Hayes today and linked to that? Or
is there something else going on?

Speaker 1 (02:03):
Yes, I really enjoy actually getting these statements because they are,
as you say, they're kind of a front runner of
what's happening in the economy. Because these companies like Hayes
Page they all see what's going on in the recruitment market,
possibly before you even get the O Andes state. So
Hayes today saying that they have seen another decline in
their conditions, so tough conditions is what they're saying in

(02:25):
the recruitment market, and List saying they expect to cut
their earnings estments by more than twenty percent for this
year and next given the declines in fees and also
just not as many positions being advertised. So Hayes stopped
absolutely slammed. To date it was down around fifteen percent,
it's now down thirteen percent. Seeing Page Group dropping as well,

(02:46):
that was down around eight percent. And also this spreading
into Europe, so a Deco was a big one, down
four percent. And also Ranstad so all the big names
that went over in Amsterdam, all the big names taking
notice of this, and really a rough day for recruitments
this morning.

Speaker 3 (03:01):
Okay, So that from Hayes and last, the European watchmakers
are having a tough time. They seem to be suffering
the same fate as other kind of luxury names too.
I mean, watches were so hot for such a long time,
aren't they.

Speaker 1 (03:14):
Yeah, so it's a continued theme as you say this,
So it's Swiss watch exports falling by almost ten percent
in May. Now that is led by a large dropping
shipments to the US. That's potentially some indication of the
trade war. But as you said there, Caroline, this has
been a theme in terms of people kind of getting
luxury fatigue and the aspirational buyers kind of moving away

(03:38):
from purchases that they maybe would have done a year
or two ago. So we're seeing Swatch declining that's done
around two percent to Dave Richemont also lower and watched
the Switzerland all of those stocks dropping this morning given
this week data. So it's continued weakness and kind of,
as I say, the aspirational luxury fatigue trade continuing hitting
watches this morning.

Speaker 4 (03:57):
As you reach for your Rolex joke and I just
have this as well because the clock is ticking on
our segment here. But the SNB, the Swiss Natural Bank
cutting is stress rates to zero percent, and Caroline was
pointing out that the Swiss frank is up about eight
percent versus the US dollar, so that may be also
a factor they're cutting rates. Maybe puts a little bit
more softness on occurrency. There's a really rallied as a

(04:18):
safe havevorite and put pressure on those exported. It just
makes those Swiss luxury watch is more expensive.

Speaker 3 (04:22):
I'm just delighted that you're trying to make me look
smart with the comment.

Speaker 1 (04:26):
Delighted about the clock ticking on the watch segment as well.

Speaker 3 (04:29):
I got that, Joe.

Speaker 1 (04:30):
I'm just sorrt to give that, give that little credit.

Speaker 2 (04:33):
The Stock Movers podcast from Bloomberg Radio. Check back with
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