// Hotter shoes delivers a 10% increase in revenues and a gross margin above 61% despite sector headwinds
// Hotter’s partnership with M&S will see it sell Hotter products on the “Brands at M&S” platform.
In a trading update for the year ended 30 January 2022, its owner Unbound Group said Hotter sales were “significantly ahead” of last year with an increase of 16% to approximately £51.9 million from £44.5 million.
The business said this was despite the “significant challenges” impacting the sector, particularly during the second half of the financial year.
The company said Hotter’s performance, following its transformation to become a digitally led business, also continues to improve.
The footwear retailer’s revenues increased by 10% in Q4 compared to the same quarter in the prior year, achieving a gross margin above 61%
The performance was achieved despite “headwinds” from Covid-19 and supply chain challenges, although it said the latter “improved and stablished” during the quarter.
Unbound said Hotter’s performance reflected the strength of it products and multi-channel offering, with double digit percentage revenue growth being achieved in both the digital and traditional retail channels.
Meanwhile, Hotter’s partnership with M&S will see it sell Hotter products on the “Brands at M&S” platform.
It follows agreements with other retailers including John Lewis, Next and The Very Group to sell Hotter products online.
Hotter launches on M&S.com today (17 February), initially offering 32 products and increasing to 75 available directly via M&S.com.
Ian Watson, chief executive, said: “I am delighted that the progress we have made in resetting Hotter continues to be translated into improved financial performance and momentum.
“The partnership with M&S is further testimony to Hotter’s attractiveness to other best in class retail platforms. The development of the Unbound Group platform is also gathering pace, we have strengthened the management team and we are currently engaged in positive discussions with a number of potential partners.”
Looking ahead, it added: “Management is confident in achieving the medium-term growth targets for both Hotter and Unbound as outlined on the Capital Markets Day in September 2021.”