Greggs Shares Take a Hit: June’s Hot Weather Blamed for Sales Slump and Lower Profit Forecast
Shares of Greggs, the UK’s beloved bakery chain, tumbled sharply this week after the company warned of weaker-than-expected sales in June. The surprising culprit? A spell of unusually hot weather kept customers away from its shops, especially in the afternoons, and forced the company to downgrade its profit forecasts. The news has sent Greggs Shares sliding, shaking confidence among investors who had enjoyed steady growth in recent years.
Greggs’ announcement highlights how sensitive even popular high-street brands can be to sudden changes in weather patterns. The drop in Sales during June has raised concerns that the company’s previously optimistic 2025 targets may no longer be achievable.
Heatwave Chills Greggs’ Performance
Greggs revealed that its like-for-like sales rose 4.7% in the second quarter of 2025, down from 7.4% growth in the first quarter. The slowdown came as the UK experienced an early summer heatwave that kept people indoors or seeking lighter, cooler meals instead of Greggs’ usual menu of sausage rolls, pies, and baked treats.
CEO Roisin Currie said, “It’s clear that the sustained warm weather through June impacted trading patterns, with fewer customers visiting in the afternoons.” Analysts at Peel Hunt noted the company’s performance in June was “materially worse than expected.”
Falling Profits and Investor Anxiety
As a result of the weaker sales, Greggs lowered its full-year profit guidance. The company now expects annual profits to come in at the lower end of analyst forecasts, around £160 million instead of £170 million or higher. This cautious outlook spooked investors, sending Greggs Shares down over 7% in early trading on the London Stock Exchange, as detailed by Yahoo Finance UK.
The sell-off reflects growing unease that even well-established food-on-the-go businesses like Greggs aren’t immune to external pressures such as weather volatility. Investors had previously bet on Greggs’ strong value proposition and widespread presence across the UK to insulate it from short-term headwinds.
Why Greggs’ Sales Slumped
A combination of factors contributed to the decline in June sales:
- Extreme Heat: Customers avoided hot, baked foods during record-high temperatures.
- Changing Consumer Habits: More people opted for salads or cold meals as the UK experienced prolonged sunny days.
- Reduced Afternoon Traffic: Greggs relies heavily on afternoon snack sales, which took a significant hit.
According to the Met Office UK, June 2025 was the hottest June since records began, with average temperatures nearly 3°C above normal.
Greggs’ Response and Plans
Despite the setback, Greggs is determined to adapt. The company is rolling out more summer-friendly products, including iced drinks and cold sandwiches, to better cater to customers during heat waves. Greggs also plans to expand delivery options through partnerships with food delivery apps, ensuring it reaches customers who might skip in-store visits during extreme weather.
CEO Roisin Currie emphasized, “We remain confident in our long-term strategy and ability to deliver value for customers and shareholders. Adjusting our menu and operations to meet changing conditions is a priority.”
Broader Market Reactions
The unexpected sales slump at Greggs sent ripples through the UK retail sector, with investors worrying other food and beverage businesses could also see pressure if unusual weather patterns continue. Shares of some of Greggs’ competitors, like Pret A Manger’s parent JAB Holdings and SSP Group, saw smaller declines.
Market analysts warned that weather-related volatility could become a bigger risk factor for food retailers as climate change increases the frequency of extreme weather events.
Final Thoughts
The sharp drop in Greggs’ Shares following its profit warning underscores how even the strongest brands can face sudden challenges. The heatwave’s impact on sales shows the delicate balance businesses must maintain when external conditions shift dramatically.
Still, Greggs’ proactive approach in updating its menu and delivery strategies demonstrates its resilience. Investors will be watching closely in the coming months to see if the company can bounce back as temperatures normalise.
FAQs
Greggs shares dropped over 7% after the company reported weaker sales in June due to unusually hot weather, leading to a lower profit forecast for 2025.
The heatwave reduced afternoon foot traffic and demand for hot food items, causing a significant slowdown in like-for-like sales growth compared to earlier months.
Greggs plans to introduce more summer-friendly menu items like iced drinks and expand its delivery services to better meet customer needs during extreme weather.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.