Thomas Sabo’s UK arm swings back to profitability
Thomas Sabo UK has climbed back into the black, reporting a net profit of £438,000 for the year ended 30 June 2016 against a loss of £27,350 in the previous year.
The company sells own brand fashion jewellery and watches through its retail shops and concessions in department stores, as well as by wholesale.
It said the industry is undergoing a period of major change as customers become “more selective in their spending patterns” and technology changes customer behaviour. Despite this, sales in the UK increased by 2.9% to £26.1 million.
The company, which operates wholly within the UK, led a carefully targeted cost-cutting programme throughout the year to arrest the losses from the previous financial period.
It opened four stores in the year and plans to concentrate on the development of its current portfolio, however the impending jump in business rates could hinder its expansion plans.
UK managing director Jon Crossick told the Standard that “our options for new London stores are narrowed following the rates revaluation.”
Thomas Sabo’s five standalone London and South-East standalone boutiques will see their bills increase by between 45% and 100%.
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