Paperchase’s profits declined by half in its full-year results as it increased its online and international sales.
The stationery specialist recorded a 50% drop in EBITDA to £4.5m in the 53 weeks to February 3, while sales increased 5.6% to £141.2m.
Chief executive Duncan Gibson told Retail Week that the business’ profit decline could be attributed to “occupancy costs, currency headwinds and footfall declines” which have impacted the wider UK retail sector.
International sales were up 12.8% during the period, bolstered by the retailer increasing its presence in Canada and the Middle East, as well as wholesale partnerships in Norway and Thailand.
Paperchase is on track to end the calendar year with 239 stores overall, comprising 145 standalone UK stores, 42 UK concessions, and 53 international concessions or franchise stores.
The specialist retailer also plans to double its number of concessions in Next stores to 25 before the end of the current year.
“We are very clear on what we need to do, which is to drive our evolution into a multichannel, multinational brand,” said Gibson.
“What is encouraging is as we take the brand to partners in the UK and internationally, the brand is resonating really well, so we know there is a real interest in the creativity, innovation and affordability we offer.
“Retail in the UK and internationally is challenging right now. We know what we need to do will be tough and take time, but we are confident that it is the right move.”