PZ Cussons warns over consumer caution amid Brexit squeeze
The Manchester-based firm said it is “increasingly clear” that shoppers are reining in their spending amid the squeeze on family finances.
Imperial Leather maker PZ Cussons has become the latest firm to warn over a tough consumer market in the UK as Brexit-fuelled inflation puts households under pressure.
The Manchester-based firm, which also makes tanning range St Tropez, said it is “increasingly clear” that shoppers are reining in their spending amid the squeeze on family finances as the weak pound sends the prices of goods and services soaring.
“Consumers are shopping cautiously reflecting general cost inflation outstripping wage growth, and broader economic uncertainty,” it warned.
Shares fell 4% as the firm said it was seeing tough trading conditions in many of its global markets, “which have been evident in the first quarter and which are expected to continue for the full year”.
But PZ Cussons said it remains on track to deliver full-year growth in earnings thanks to cost-cutting efforts and new product launches.
New Imperial Leather, Carex and Original Source products have been “well received”, according to the group, although it said pricing and discounting has been key for cost-conscious shoppers.
Strong summer sellers also included its new Sanctuary Being range.
PZ Cussons added: “The business remains in good shape with market shares holding or growing in key categories.
“Whilst tough trading conditions are evident in most markets and expected to continue, brand initiatives, tight cost control and our deep knowledge of our markets provide a solid basis for the year ahead.”