Hobbs reported a jump in its full-year earnings and is mulling plans to accelerate its US expansion due to sales “outperforming expectations”.
The fashion retailer recorded an 18% increase in EBITDA to £7.7m in the year to January 30, up from £6.5m the previous year.
However, Hobbs did not provide a pre-tax profit figure for the year, having posted a £15.6m pre-tax loss in its 2014/15 financial year.
The retailer attributed its EBITDA growth to margin rate gains, which increased 3.3% “as a result of significant growth in full-price sales”.
Hobbs, which entered the German market in March through tie-ups with department store retailers Wöhrl and SinnLeffers and online retailer Zalando, reported a 5.7% drop in full-year sales during the period to £109.9m.
However, the fashion retailer said there had been “strong like-for-like growth” in its US outlets. Hobbs opened four new outlets in Bloomingdale’s department stores in the US during the period alongside a further five in the past six months, taking its total number of concessions in the country to 14.
The retailer, which also sells through Bloomingdale’s website, said “international sales are outperforming expectations and the business is currently considering options to accelerate growth both in the USA and other international markets”.
‘An exciting year’
Hobbs, which appointed Mehul Tank as its chief financial officer earlier this month, opened two new stores in Birmingham and Manchester and relocated its Milton Keynes outlet during the period.
Chief executive Meg Lustman said: “It has been an exciting year for Hobbs and our results are very encouraging.
“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.”
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