House of Fraser full year EBITDA jumps as online sales soar

Revenue came in at £1.2bn. Gross profit increased £4.7m to £403.8m over the year to January 26.

The department store retailer’s sales growth has improved in its current year, with like-for-likes up 4.8% in the 13 weeks to April 27.

Online was its star performer with sales soaring 53% over the year. The channel now represents 10.9% of total sales.

House of Fraser said it experienced sales growth in all categories. Its own brands, which now represent 14% of sales, continued to grow with sales up 4% and gross profit rising 5% over the year.

House of Fraser chief executive John King said: “The growth has been driven by continued success of our key strategic pillars. We have strengthened our relationships with our brand partners and continued our collaborative approach to improving store environments and selectively refurbishing stores which have generated sales growth and positive returns. Overall, we have continued to enhance our premium department store positioning and this is reflected in our strong current trading.”

Chairman Don McCarthy added: “During the year the management team has further developed and modernised the business. We expect economic conditions to remain subdued and it remains difficult to assess when market conditions will improve. Nevertheless, we are confident that the group’s business model, with our premium brand positioning and strong multichannel operations, is highly relevant to changing consumer habits and are confident that the group will continue to grow and develop for the foreseeable future.”