All Saints returns to profit as international sales climb

The fashion retailer posted operating profit of £3.6m in the 52 weeks to February 2 compared with a loss of £6.2m the previous year, bolstered by a 1.2% uplift in revenue to £331m.

The retailer’s EBITDA before exceptionals was flat year on year at £20.6m, while pre-tax losses narrowed from £32.8m to £26.1m.

All Saints, which ended the financial period with a 255-strong store estate across 26 countries, said its international sales comprised over half of overall revenue during the year, with sales across Asia up 10% year on year.

Sales across the business’ non-retail channels, which comprise wholesale, franchise and travel, rose 40% during the period, while online sales increased 15%.

Gross profit margin rose to 65.3% in comparison with 64.9% in the previous period, driven by a reduction of promotional activity during the year.

In the first half of the retailer’s current financial year, it has recorded a 15% rise in sales year on year in the period to August 3, which the business attributes to its focus on bolstering its non-retail channels across its different regions, which has resulted in a 63% rise in sales.

All Saints said its like-for-like sales growth was 14% during the period due to increased investment in its core apparel lines alongside expanding into new categories such as fragrances and watches and an increased footwear and accessories range.

Chief executive Peter Wood said: “The financial year that ended in February 2019 saw us deliver our sixth consecutive year of top-line growth and a resilient EBITDA performance set against the backdrop of challenging market conditions.

“We are delighted that our focus on product, marketing and distribution has resulted in a significant and sustained step up in our performance since the second half of 2018 which we have further improved on so far in our new financial year.

“It is particularly pleasing that our first-half year-on-year sales growth of 15% was achieved via our teams delivering LFL sales growth in every country in which we trade and across every channel in which we operate. This includes our bricks-and-mortar retail stores, concessions and outlets, as well as digital and wholesale, franchise, licensing and travel retail.

“Despite the ongoing challenging market conditions, we believe the strength of our brand, our clear strategic focus, and the quality of our team mean that we are well placed to deliver continued growth in future.”