Hobbs grows full-year earnings as it pushes on with international expansion

By

Barbara Santamaria

Published
Jul 25, 2016

Womenswear retailer Hobbs increased EBITDA for the full year ended 30 January 2016 by 18% to £7.7 million, driven by a margin rate increase of 3.3 percentage points to 63.8%.

The British brand said in financial year 2015/16 it cemented its strong position in the UK market and increased its footprint in the US with new store openings, as well as entering the German market successfully.

In the UK, the retailer offering understated and timeless fashion for busy women launched two new standalone stores in Birmingham and Manchester and relocated its store in Milton Keynes. Hobbs also launched a store in High Street Kensington post-period end.

In the 12-month period, the brand opened four new concessions in the US, while a further five have opened post-period end as well as a successful launch on Bloomingdales.com. Germany also saw the entry of the brand through relationships with Wohrl, Sinnleffers and Zalando.

The company said international sales are now outperforming expectations and that it is currently considering options to accelerate growth both in the USA and other international markets.

“It has been an exciting year for Hobbs and our results are very encouraging,” said Meg Lustman, CEO of Hobbs. “Our strong performance this year against an uncertain economic backdrop is an indication of the success of our investments and our growing international footprint. We are confident of seeing further positive results as our growth plan progresses. “