Contemporary womenswear chain Phase Eight’s pre-tax profit soared 42.2% to £15.4m in the year to January 29 after a focus on sourcing and product offering.
Sales surged 27.8% to £92.9m at the retailer, which is majority owned by private equity firm Towerbrook Capital following a sale in February.
Phase Eight chairman Michael Rahamim attributed the strong performance to an improvement in sourcing and product offering.
The retailer set up a buying office in China to enable increased sourcing from Asia, and introduced more silk fabrics from areas such as Italy, which have proved popular with its customers.
Rahamim said Phase Eight has benefited from staying in tune with its customers. “It has simply been about listening to our customers, understanding what they want and responding to that. There haven’t been any dramatic changes to get to this point and none of it is rocket science.”
Phase Eight opened eight stores and 23 concessions in the year, bringing its total in the UK to 93 stores and 150 concessions.
Rahamim confirmed that the retailer was likely to open a further 12 to 15 stores and 15 concessions during the current financial year, adding larger sites in major cities to a portfolio which has focused on market towns. He also said Phase Eight will explore international expansion over the next three to four years.
In February, TowerBrook managing director Winston Ginsberg said he believed Phase Eight could “achieve substantial additional growth though further leveraging its brand and expanding its network of stores”.
According to Retail Week Knowledge Bank, Phase Eight targets ABC1 women aged 35 to 55. It reports that in recent years the retailer has expanded its product range to include more occasion and daywear options and has also continued to fine tune its store format.
To read the full report on Phase Eight, visit Retail-week.com/phaseeight