Fashion retailer Reiss has reported “creditable” earnings last year, when it suffered like other retailers in the aftermath of Lehman Brothers’ demise.
Reiss generated EBITDA of £8.5m in the year to January 31, down from £11.9m the previous year, excluding the impact of US start-up costs. Sales advanced 21% to £81m during the year.
The retailer said that as the downturn hit in the second half of the year, trading was affected.
“As a result the market saw an unprecedented level of discounting by retailers in the run-up to Christmas,” Reiss reported. “To protect our brand position we limited our involvement, but we ensured we ended the year with clean stock. As a result, this negatively impacted our performance.”
Profits were also affected by infrastructure investment which began before trading conditions deteriorated.
However Reiss said: “Trading in 2009 has continued to improve and maintaining the investment in infrastructure, and its negative short-term impact on profit, will ultimately improve the potential of the brand and its long-term profitability.”
Last year Reiss opened a new head office and flagship store in shared premises. The retailer also created a “dedicated brand department” which it expects to strengthen its profile internationally.
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