TM Lewin profits up as it eyes further international growth

Sales broke through the £100m barrier for the first time, jumping 20% to £100.4m in the year. However growth has slowed since year end, with sales rising 9% to £50.4m in the six months to August 27, when international sales increased 26%.

Gross margin slipped from 66% to 63.9% in the year.

The formal mens and womenswear retailer made 13% of its sales from its international business.

Menswear accounted for 84% of revenue.

The retailer said it has a “strategy for significant growth” over the medium term, focussed on international and multi-channel sales expansion as well as “maintenance of [its] leading UK market share position”. It operates 100 stores and concessions in the UK, and seven internationally.

Home shopping sales jumped 28% in the year.

TM Lewin is targeting international sales to equal its current UK level by 2016. It added to its overseas store portfolio in the year, opening a store in Sydney “which will be a platform for expansion into Asia and Australia”, the retailer said.

The retailer made three key appointments this year, hiring Mark Dunhill as international director in January; Andy McQuin as marketing director in September; and Matt Hudson as merchandise and buying director. Hudson will start his job in February.

TM Lewin chief executive Geoff Quinn said: “It’s been an exciting time at T.M. Lewin.  Despite some very real challenges in the UK, we broke the £100m sales level for the first time in our history and our successful store expansion programme has taken our portfolio worldwide to 107. 

“If the past was frenetic, the future will be even more so.  We have finalised a three-pronged strategy for our medium-term development: maintain and build on our outstanding leading market position in the UK; build our international business over the next four years with sales equivalent to the UK’s today; and, build out a fully integrated multi-channel sales platform to ensure we optimise the opportunities across all our markets.

“We’ve made an excellent start to the current financial year with sales in the first half up 9% in a very challenging market. We have an outstanding team driving a growth strategy which, together, will enable us to realise our ambition of establishing the brand worldwide.”