Greggs Shares Drop: Warns on Profit as Heatwave Cools Footfall

Greggs (LON: GRG) shares dropped sharply on Wednesday after the bakery chain warned that full-year operating profit could fall short of 2024 levels, citing a slowdown in sales during June’s heatwave.

Greggs shares are down more than 14% in early Wednesday trading, currently priced around the 1,695p mark.

In a trading update for the 26 weeks to June 28, the company reported total sales of £1.03 billion, representing a 6.9% year-over-year increase. 

However, like-for-like sales in company-managed shops rose by just 2.6%, with June performance hit by “very high temperatures” that “reduced overall footfall,” despite stronger trading in May.

The company said it now expects full-year operating profit to be “modestly below that achieved in 2024,” a downbeat signal that sent shares lower in early trading.

The company opened 87 new shops during the first half of the year and closed 56, bringing the total number of trading outlets to 2,649. Greggs said it remains on track to deliver between 140 and 150 net openings for the full year.

The first half also saw an accelerated refurbishment programme, with 108 shop refits completed and a further 50 planned for the second half.

Looking ahead, Greggs noted that less challenging comparisons in the second half, along with cost mitigation measures, should support a stronger performance later in the year. 

However, the company cautioned that elevated temperatures and softer footfall may continue to pressure sales. Interim results are due on July 29.