AllSaints marches to fourth year of sales gains, China entry expected after international success
AllSaints marched into its fourth consecutive year of sales growth, although international expansion costs took their toll.
The UK-based fashion retailers saw sales jump 20% to £303m in the year to January 28.
Much of its growth was driven by its international division, typified by its entry into Japan, with overseas sales jumping 31% to £142.2m, driven by continued growth in North America and Asia. Overseas ops now account for 47% of total revenue.
That should grow even further as the retailer is considering expanding into China, with an announcement expected soon, it said.
Sales were boosted even further by online success, hitting £57.4m, and now accounting for 19% of the total business mix.
However, earnings for the period fell also 9% to £26m hit by costs, linked with its debut in Japan, investments in technology, and a foray into travel retail, particularly in South Korea where it has opened stores at Incheon International Airport, Shinsegae Duty Free and Shilla IPark Duty Free.
CEO William Kim said: “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.”
The earnings decline also reflected the need for heavier discounts compared to a year ago when earnings topped £28.5m.
Kim added: “This has been another period of significant progress for AllSaints, and represents our fourth consecutive year of growth. The international expansion of our business has continued at pace, with sales from non-UK operations now accounting for nearly half of the group’s overall revenue,” he confirmed.
The retailer, which has been owned by private equity firm Lion Capital since 2011, now boasts 243 sales units, including owned, concessions and franchises, in 27 countries.