// Hobbycraft hailed “strong” earnings growth over the year
// Total revenue for the year to February 2019 increased 5.4% to £177.7m
// Online sales grew 22.7%
// Adjusted earnings before interest & tax rose 27.8% to £12.2m
Hobbycraft has posted a rise in sales and earnings for the year but expects the UK retail environment to “remain challenging”.
The arts and crafts retailer’s total revenue for the year to February 2019 increased 5.4 per cent to £177.7 million, boosted by an online sales growth of 22.7 per cent.
Adjusted earnings before interest and tax rose 27.8 per cent to £12.2 million.
Despite the UK’s tough trading conditions, Hobbycraft said it felt “well placed” to deliver its growth plans.
“We are pleased with our performance and how our offer has improved over the past year,” Hobbycraft chief executive Dominic Jordan said.
“We continue to pursue our plans for multi-channel growth as we target our strategy to improve the broader appeal of our brand.
“This is being achieved through leveraging our broad product range which meets the needs of core hobbyists, families and everyday makers, with continued focus on delivering value to our customers.”
Hobbycraft currently has 94 shops across the UK, and over the year it opened five new stores.
The retailer said it was focusing on launching new smaller stores in a bid to improve its profitability.
Hobbycraft’s growth strategy has been driven by increased online sales as well as click-and-collect sales growth.
Meanwhile, Hobbycraft said the rise of Marie Kondo’s organisation method resulted in its storage trolley sales surging by 207 per cent.
“Our focus remains on great customer service and colleague engagement as we seek to provide help and inspiration to customers in their local communities,” Jordan said.
“Our in-store workshop programme plays a key role where our colleagues demonstrate their incredible knowledge and passion for crafting whilst helping customers with their projects.”