Reiss posts earnings rise as it reins in discounting

The fashion retailer posted a 21.3% increase in EBITDA to £19.3m in the 25 weeks to February 2.

Total sales at Reiss advanced 8.3% to £186.3m or, adjusting for a 53rd week in 2017, a rise of 10.1%.

Reiss reported that the performance reflected lower promotional activity and a focus on full-price sell-through, which delivered year-on-year margin growth.

The retailer invested in “people, operations and omnichannel infrastructure, CRM capabilities and customer experience” and implemented RFID in its UK branches as “the forerunner to full omnichannel stock transparency”.

The retailer opened 20 new points of sale and closed three unprofitable stores over the year, when it also launched online with US department store group Nordstrom.

Reiss chief executive Christos Angelides said: “The initiatives we put in place to refresh the brand and product offer, both in-store and online, have resonated well with our customers.

“Last year, we continued a programme of investment across all areas of the business that specifically focused on upgrading the design and quality of the Reiss product offer. This, coupled with operational improvements, has delivered a step change in performance.

“Early sales from the Spring Summer ’19 collections have maintained the positive momentum that built towards the end of last year, reflecting our drive to unlock the brand’s potential. However, I am conscious that the retail environment remains subdued and we will not be complacent as we continue in our work to create beautiful, timeless clothes for Reiss customers.”

This year Reiss will introduce a new shoe and accessories collection in stores, online and through wholesale. It will open 40 new points of sale worldwide, including in Nordstrom stores in the US.

In the first 10 weeks of the current financial year, Reiss’s group sales advanced 27.9% year on year. UK like-for-likes rose 27.6% and international like-for-like sales were up 38.6%.