Kurt Geiger upbeat as it bounces back despite ongoing pandemic disruption
Kurt Geiger has filed its results for the year to the end of January, and said that it saw "impressive turnover, and profit growth" during the period, despite it continuing to be "significantly impacted" by the pandemic.
In numbers, what that meant was turnover rising 21.9% to £234.3 million while the total gross margin increased to 54% from 46.9%. EBITDA was £19.6 million an increase of 165% on the prior year when it had been only £7.4 million. Meanwhile operating profit was £2.9 million, and would have been much better, but for a number of one-off items. It was a swing from a loss of £22.7 million a year earlier. The final net profit figure stood at £7.3 million, up from a loss of £15.5 million in the previous period.
The company said that the turnover increase was helped by it delivering strong growth in its own-brand business, both domestically, and even more so across the US and Europe. But that growth was partly offset by the impact of the pandemic, including the enforced closure of physical stores for most of the first quarter, along with increased restrictions during the final quarter.
The gross margin increase was driven by strong management of inventory levels and the growth of the own-brand product mix, although margins continued to be impacted by over-stock following pandemic disruption.
The company said that significant trading highlights during the year included excellent growth in its wholesale business, particularly internationally. Wholesale was a "fantastic success, and represents a huge opportunity for the brand as we grow in these relatively new markets for the Kurt Geiger brands,” it said.
However, the growth didn't fully translate into increases in turnover given the continue disruption caused by the pandemic, but it clearly sets the business up for future expansion.
It also called out its continued investment in the digital operation. Plus it further expanded its Carvela branded stores with another five opened during the year. And it launched its accessories and jewellery range in physical stores and digitally.
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