Shares of WPP slipped nearly 8 percent in London this morning after advertising’s largest holding company reported slowing sales in the critical North American market during the first half of this year.
In the second quarter, like-for-like sales in North America fell 0.3 percent.
They slipped 0.7 percent in the first half of 2018.
Excluding certain impacts from acquisitions and currency, total revenue climbed 2.4 percent and 1.6 percent in the second quarter and first half of 2018, respectively.
Like-for-like sales in the U.K. were up 1 percent in the second quarter and 3.1 percent in the first half of the year; in Western continental Europe, like-for-like sales rose 4.6 percent in the quarter and 1.7 percent in the first half; and in Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe region, sales spiked 4.5 percent in the second quarter and 3.7 percent in the first half of 2018.
The slowdown in North America is not isolated to WPP; it is a reflection of the widespread pressures facing the industry in that region, according to Forrester principal analyst Jay Pattisall.