Hollywood Bowl has revealed sliding UK sales over the summer as record heatwaves impacted customer demand for indoor entertainment.
The group reported a 5.6% drop in UK like-for-like sales over its second half to the end of September in a sharp reversal after a 2.6% rise in the first six months’ trading.
Dynamic pricing offsets impact
But the 10-pin bowling chain said it had been able to help offset some of the hot weather hit by using so-called dynamic pricing, as well as keeping a tight lid on costs.
Shares lifted 7% as the group trading remained “resilient” in the face of the heatwave impact and kept its full-year profit guidance unchanged.
CEO comments on demand
Stephen Burns, chief executive of Hollywood Bowl, said: “I’m pleased that the fundamental financial and operational strengths of our underlying model allowed us to deliver significant sales growth, even against a challenging backdrop.
“Demand remained resilient during the extended period of record hot weather in the UK, supported by our disciplined cost and pricing model, and our operational initiatives to drive footfall.
“Our affordable, inclusive proposition has continued to ensure we are well-positioned in an environment where consumers are closely watching what they spend.”
Record revenues and expansion
Despite the summer trading blow, Hollywood Bowl said total group revenues rose 4.3% to a record £261.6 million as its Canadian business enjoyed robust growth and due to site openings.
The firm opened four new centres to take its total estate to 95, with eight more in the pipeline in the UK and Canada over the new financial year ahead.
It remains on track with aims for 130 centres worldwide by 2033.
“A strong second half performance reflects the investments we’ve made in existing and new centres in the territory, and we have made a material step forward in our pipeline for new centres,” Mr Burns said.
