AllSaints upbeat as signature brand and John Varvatos make progress
UK-based fashion retailer AllSaints saw strong revenue growth in its latest year and said on Thursday that the trading performance for the first half of the new year continued to be positive.
The year to the end of January includes a four months’ trading performance of John Varvatos, the New York-based alternative luxury menswear brand that it acquired in October 2021.
The company said total revenue was therefore £337 million, with the AllSaints label seeing revenue growth of 20% to £312.9 million, despite store closures and social restrictions impacting its shops around the world for big chunks of the year.
Retail revenue, including stores and e-tail, rose 15% to £268 million. And non-retail (that is, wholesale, franchise and licensing) revenues were up 59% to a record £45 million following “concerted efforts to ensure the group’s products reach more customers than ever before”.
Pre-operating exceptional EBITDA increased to £39 million with total post-operating exceptional EBITDA up 6% to £35.7 million. Operating profit increased to £10.1 million from £0.7 million.
In the six months to the end of July, “trading performance has continued to be positive, with both AllSaints and John Varvatos brands generating year on year revenue increases of 36% and 13%, respectively”.
While the previous comparison year included periods of store closures in the UK, Europe and Canada, sales performance to date has been “higher than expected”.
It said that footfall to physical retail locations has been “better than forecast, digital conversion has been robust, and non-retail channels have also delivered good growth versus the previous year”.
The company added that it boosted its sustainability and diversity during the year and recently launched its AllSaints Spitalfields limited edition pieces, “which have been produced in the group’s East London HQ atelier space and have been well-received by the group’s customers”.
The pieces all use British fabrics and therefore have “an extremely low carbon footprint whilst also supporting local manufacturers”.
CEO Peter Wood said: “I am proud of the way our team has moved on from the challenges of the pandemic to deliver a strong financial and operational performance. It has been achieved as a result of our strategic focus on product, marketing and distribution, which drove increased customer reach and improved inventory productivity. This, combined with our robust omnichannel operating model, enabled us to mitigate the adverse impact on physical retail channels during the pandemic.”
He also said that adding the John Varvatos brand to the group during the year, “has already delivered a return to profitability under our stewardship. This demonstrates our ability to help great brands and teams achieve their true potential, and I am confident that the clear synergies between AllSaints and John Varvatos will contribute to the future growth of the group”.
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