The Hut Group posts 47% sales jump

955
Hut Group bank

The Hut Group has enjoyed a record-breaking year of sales, thanks to major investment drives and international growth.

For the year to December 31, group sales surged by 47 per cent to £736 million, boosted by 62 per cent skyrocketing growth in international sales.

International sales now comprises 70 per cent of overall sales for The Hut Group, the parent company of retailers Illamasqua and RY, and cosmetics subscription business Glossybox.

Meanwhile, gross profit jumped 51 per cent year-on-year to £318 million and EBITDA grew 38 per cent to £69 million.

During the year The Hut Group splashed out £164 million in strategic acquisitions, £39 million was spent on physical infrastructure projects for manufacturing, distribution, supply chain and office facilities, while £25 million was invested in the technology platform.

The Hut Group has also commenced work its new 870,000sq ft head office at Manchester Airport, which will take two years to complete and will home to 10,000 employees.

In addition, in May this year the retailer increased its banking facility to £600 million which it will use for “significant strategic initiatives” and for potential mergers and acquisitions.

“The Hut Group is now firmly a global player and it is particularly pleasing to see over 70 per cent of group sales coming from overseas, and 58 per cent of total sales being of our own brands,” The Hut Group chief executive Matthew Moulding said.

“During the year our acquisitions of Hangar Seven and UK2 saw us develop further our propriety technology platform, THG Ingenuity, and investments in key brands such as Espa, Illamasqua and Glossybox further extended our leading beauty offer.

“In addition, our job creation continued apace and we welcomed over 1800 colleagues to The Hut Group around the world.

“With our growing, talented workforce, our leading brands and our cutting-edge technology and infrastructure, we look forward to a further year of growth in 2018.”

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