WPP, the world’s largest advertising group, cut its forecast for 2017 net sales after a first-half decline in its biggest market, North America.
Total like-for-like net sales fell 0.5% in the six months to June 30, the London-based firm said. In North America, like-for-like sales were down 2.2%, although they were up 3.8% in the UK. “Following the pressure on client spending in the second quarter particularly in the fast moving consumer goods or packaged goods sector, the quarter 2 full year revised forecast has been revised down further, with both like-for-like revenue and net sales forecast to be between zero and 1% growth,” the company said. In its annual report issued in March, growth of 2% was projected, which it then described as “conservative.” In July, like-for-like revenue fell by 4.1% and net sales contracted 2.6%, less than the company’s budget and the revised second quarter forecast.