Helly Hansen profits jump but UK Musto unit makes loss
Helly Hansen profits have moved higher despite the Oslo-based outdoor clothing brand having recorded a loss for acquired UK brand Musto.
Its annual earnings in 2017 powered ahead by 25% to $231.6 million, easily outstripping its revenue growth. Revenues were more than encouraging though. It achieved an 18% increase to reach $359 million as the company continued to focus heavily on controlling costs and investing in its brand.
But it clearly still has plenty of work to do with the Musto brand, which it bought for $32 million last October. While the last few months of the year saw Musto contributing revenue of $7.2 million, its operating loss was $744,381, The Telegraph reported.
Musto had swung to a profit of almost £929,000 in the previous year, even though its revenue had fallen 10% to a little under £29 million.
Since acquiring it, Helly Hansen has cut 40 staff from the UK firm as it has also focused on efficiencies there and as it gets ready to grow the label internationally.
For the Helly Hansen business as a whole, chief executive Paul Stoneham said he was positive about its 2018 performance and its wholesale order book has risen 15% year-on-year.
A big part of his optimism is because of the aforementioned cost controls with the senior executive citing “a leaner supply chain, increased product quality, and reduced product cost” as key to its success.
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