What's happened
Hero Brands reports record earnings amid expansion plans, while Time Out faces share drops after profit warnings. SThree shows US recovery, but UK struggles. The contrasting performances highlight varied industry responses to economic pressures in 2025.
What's behind the headline?
The contrasting financial performances of these companies reveal the uneven impact of 2025's economic pressures. Hero Brands' focus on culture-driven brands and strategic investments position it for future growth, capitalizing on consumer interest in authentic, community-oriented experiences. Its emphasis on incubating high-value brands aligns with broader trends toward culture and entertainment.
Meanwhile, Time Out's decline underscores the risks of digital transformation challenges. The shift from text-based content to video and social media has disrupted traditional media revenues, prompting strategic shifts but still resulting in short-term losses. The company's plan to produce more videos and leverage social media indicates adaptation, but the market's rapid change remains a threat.
SThree's US recovery highlights the importance of geographic diversification. Despite a 12% overall fee decline, its 4% growth in the US suggests resilience and potential for stabilization. However, the UK market's 27% drop signals ongoing regional challenges. The company's focus on operational efficiency and emerging growth pockets will likely determine its trajectory in 2026.
Overall, these stories illustrate that adaptability, strategic investment, and geographic diversification are critical for navigating 2025's economic turbulence. Companies that align with consumer culture and leverage digital shifts will likely outperform those slow to adapt or overly reliant on traditional revenue streams.
What the papers say
The Scotsman reports Hero Brands' strong financial year, driven by brand expansion and strategic investments, emphasizing its position as a culture-focused enterprise. Scott Reid notes Hero Brands' global sales of 00m and its plans for further growth.
In contrast, The Independent highlights Time Out Group's sharp revenue decline and share plunge following profit warnings, attributing the downturn to consumer shifts toward video content and social media. The article details the company's strategic pivot to video production and social media monetization.
Meanwhile, The Independent also covers SThree's 2025 performance, noting a 12% fee decline overall but a 4% US growth, with UK struggles. Timo Lehne emphasizes operational discipline and emerging growth opportunities amid ongoing macroeconomic challenges.
These articles collectively showcase how different sectors and regions are responding to the economic climate, with some companies thriving through innovation and strategic focus, while others face significant hurdles due to market shifts and consumer behavior.
How we got here
The articles reflect a challenging economic environment in 2025, with some companies adapting successfully while others face setbacks. Hero Brands benefits from strategic investments and brand expansion, whereas Time Out and Time Out Group experience revenue declines due to shifting consumer behaviors and market conditions. SThree shows resilience with US growth despite broader difficulties.
Go deeper
Common question
-
Why Are Some Companies Thriving While Others Struggle in 2025?
The economic landscape in 2025 is showing a clear divide. While some firms are reporting record profits and expanding, others are facing declines and share drops. Curious about what’s driving these contrasting results? From strategic investments to shifting consumer behaviors, explore the key factors behind these trends and what they mean for the economy this year.
More on these topics