The Original Factory Shop has recorded a huge surge in full-year profits after a three-year transformation plan got off to a strong start.
Pre-exceptional EBITDA increased 50% year-on-year to £14.2m for the year ending March 31 as sales increased 7.1% to £208m.
Like-for-likes rose by 4.2% during the period as sales across the discount department store’s product ranges recorded healthy increases.
The Original Factory Shop chief executive Tony Page said: “It is year one of a new three year plan but it is proceeding better than we expected.
“In the prior year the new senior team had some challenges as we came through the well documented systems issues that we inherited.
“We have done extremely well in driving productivity from source to warehouse through to store by managing our stock and effectively feeding our stores with a lot less stock. One of our key strategic principles is a brilliantly simple supply chain.”
Pre-tax profits at the retailer declined to £1.8m in the year ending March 30, 2014 due to the introduction of a warehouse management system that was plagued by problems.
Ladies wear sales at the retailer in its most recent financial year increased 10% on a like-for-like basis as the company pursued a more fashion led marketing approach. Best selling products included jeggings and Sloggis.
The gardening segment meanwhile recorded a 47% increase in sales, although still comprises a small proportion of overall sales.
Page partly attributes a strong Christmas trading performance to the company’s measured approach to Black Friday.
He said: “We did not decimate our profitability and wreck the whole pattern on Black Friday. It is something I think retail as a whole went a bit too far on.
“We think we are bloody good value anyway so giving it away sends the wrong signals to the consumers.”
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