Bad results? Blame the weather. That’s the prevailing attitude from a growing list of listed UK companies. Investors' Chronicle analysis of trading updates and results has found 23 instances of companies blaming mild, wet, and/or warm weather for a downturn (and in some cases an increase) in sales. Below is a table showing some of the most recent excuses.
A few observations and caveats from our data: First, it is not exhaustive, covering only the instances where we spotted a reference to the weather which raised an eyebrow.
Second, blaming the weather is arguably legitimate, considering last year was the warmest on record. But, then again, Next (NXT) and Sainsbury's (SBRY) pinned good trading on the unseasonably warm temperatures last autumn, suggesting weather-blaming shows a business' relative lack of climate adaptability and poor stock management – or a tendency to look elsewhere for excuses.
Third, this phenomenon mainly hit fashion and drink retailers (Barclays didn't blame the weather for a sluggish housing market, for example, although something for it to think about), suggesting that those businesses are generally more sensitive to weather and more holistically, climate change.
Finally, we are less credulous of some excuses than others. Fevertree Drinks (FEVR) blamed its poor H1 figures on “the vagaries of the British summer weather", for example.
We would submit that: A) trading updates are not the time to attribute anything to "vagaries" as they are... vague, B) A disappointing British summer is surely an occupational hazard when setting up a business (or indeed living) in the UK, and C) When has rain stopped Brits from enjoying a gin and tonic?
