AllSaints profits surged in its most recent financial year, despite a dip in sales, as the fashion retailer benefited from margin improvement initiatives.
Pre-tax profit for the brand rose 55% to £28.2m in the year to February 1, up from £18.2m previously.
It attributed the growth to a mixture of shorter markdown periods, earlier seasonal launches, extending full-price selling and effective inventory management.
Annual sales slipped 4% to £441.3m due to a deliberate reduction in promotional and markdown activity. Revenues for its AllSaints business were down 5% to £372.4m, while sales for its John Varvatos brand were up 4% to £68.9m.
During the period, AllSaints launched its Smallsaints kidswear line, a new fragrance collection and men’s tailoring and underwear ranges.
It unveiled a new third-party operated European distribution centre in the Netherlands to help strengthen its growth with both new and existing concessions.
The retailer also opened seven new stores in the year, including its new concept store in Manchester’s Trafford Centre and a John Varvatos outlet in New York.
AllSaints chief executive Peter Wood said: “Huge credit is due to our teams around the world who have worked so hard to deliver a new record profit performance. While our group revenue reflects our decision to reduce markdown activity to improve the quality of our sales, we’re pleased that a number of areas across the business continued to deliver strong top-line growth.
“Revenues at John Varvatos rose 4%, helping to deliver its best-ever profit performance since we acquired it in 2021 – a testament to the strength of this fantastic modern American luxury brand. Wholesale also delivered strong growth, supported by partner expansion and our new EU distribution centre, making continental Europe our fastest-growing market.”
“Despite the challenging global environment affecting all businesses over the past year, our continued investment in our talent, as well as in product, marketing and distribution, means we are reaching more customers than ever before. There remain plenty of exciting growth opportunities for both AllSaints and John Varvatos, and we are well-placed to pursue them with confidence.”
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