Oasis and Warehouse profits rise despite ‘challenging retail environment’

The fashion retailer’s total sales increased 6.5% to £293.3m during the 53 weeks to March 2. Despite “difficult market conditions” the group’s operating profit increased 35% to £0.9m and EBITDA jumped 20% to £11.5m during the period.

The group registered a 17% increase in EBITDA on a 52-week like-for-like basis and total like-for-like sales were up 0.2% for the same period – excluding the 53rd week. Total turnover dropped 2% driven by the planned closure of unprofitable stores.

Total online sales during the period were up 17% for the group, with online now representing 30% of overall sales. 

Following the completion of its turnaround strategy, Warehouse returned to profitability on a full-year basis, which the group said was driven by product proposition resonating with its existing customers and its brand strategy engaging new customers.

During the financial year, Oasis unveiled its partnership with Sainsbury’s to open “shop-in-shops”. Five Sainsbury’s stores now have Oasis concessions, with plans to roll out more over the next twelve months.

Ladha said: “I am delighted to report another strong performance for the group despite a challenging retail environment. The group has delivered growth and has continued to build on the momentum achieved over the last few years.

“Headwinds and structural challenges will continue to impact UK retailers; these, coupled with the uncertainty of Brexit, will continue to have an effect on consumer’s spending behaviour making the trading environment difficult.

“I believe that we have two well invested, innovative brands which continue to resonate with customers’ and continue to remain modern and relevant.

“Whilst we do not expect conditions to materially improve in the medium term, our continued focus on efficiencies combined with our strategy to continuously drive product innovation, brand and customer experience positions us well for the future.”