Saturday, November 27, 2021

Foyles sees profits increase 1000%

Foyles has announced a 10-fold increase in its profits last year, marking the second consecutive year of profitable trading and a successful turnaround.

The bookseller saw turnover rise to 2.75 per cent to £25 million in the 12 months to June 30, 2016.

Meanwhile pre-tax profits skyrocketed from just £11,108 in 2015 to £131,447 a year later, remaining cash positive with a EBITDA of £631,541, compares to 2015‘s £397,055.

Company profitability was improved by measures like digital ordering system Foyles Lite, the launch of a summer children‘s festival, and the turnaround of its previously loss-making ecommerce arm.

Last year‘s adult colouring craze was a key sales driver, alongside best sellers like Go Set a Watchman by Harper Lee, SPQR by Mary Beard, the Foyles exclusive edition of Slade House by David Mitchell and Penguin‘s Little Black Classics series.

READ MORE: Retail Gazette Loves: Ladybird Books for Adults

In autumn 2015 the retailer continued its regional expansion with its first shop in the Midlands, opening in Birmingham‘s Grand Central development.

In the same period Foyles relaunched its Bristol shop with a café concept, moving to a new, higher-footfall location in Cabot Circus.

“It‘s very encouraging to see such a positive increase in our profitability and sales, a testament to the work being done across the business to enhance our customer service, modernise the business, manage our costs and engage with readers,” chief executive Paul Currie said.

“Foyles is 114 years old, but everything we do is in that enterprising and innovative spirit of our founders.

“While the announcement that we‘ve made a profit for the second year in a row is undoubtedly good news, we are aware we still have a lot of work to do to ensure sustainable growth for the business in the long term.

“In such a low margin business as books, the support of our publishing partners will be essential in this process.”

Click here to sign up to Retail Gazette’s free daily email newsletter


Please enter your comment!
Please enter your name here