AllSaints shruggs off earnings slide as sales jump 20%

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AllSaints

AllSaints’ investment in international expansion and tech improvements has paid off, as the fashion retailer reported a 20 per cent jump in full-year sales.

For the year to January 28, sales grew to £303 million, with digital revenues making up around 19 per cent of the total at £57.4 million, while international sales accounted for £142.2 million or 47 per cent.

On its own, international revenues were up 31 per cent on an annual basis, boosted growth in North America and Asia.

Despite the surge in sales, the British retailer endured a nine per cent drop in earnings before exceptional items to £26 million for the year – a contrast the 18 per cent growth to £28.5 million it recorded a year earlier.

The fashion brand said the results reflected start-up and pre-opening costs linked to its Japanese launch, as well as “strategic” investments in technology and its new travel retail outlets.

“We don’t see it as a disappointment,” AllSaints chief executive William Kim said.

“Take a look at Amazon – for every growth they have, what do they do? They reinvest it back into the company and the model. We’re no different.

“Since 2012 what we’ve been set to do is build a future-proof model. When you’re building a future-proof model, it takes investment.”

AllSaints – which has been owned by private equity firm Lion Capital since 2011 – opened 74 stores, concession and franchises globally over last financial year.

Including its openings since January, the retailer now has 243 stores across 27 countries.

Kim hinted AllSaints could soon open in China after confirming the business would continue to invest in its Asian markets.

“This year we’re planting some seeds… we are planning something in China,” he said.

“But our approach, as it always has been, is very different from the traditional retailer’s approach, brand’s approach to launch (in) a country.

“So we’re doing some activities there that I think is quite unique and we’ll be announcing it in due course.”

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