AllSaints swings to operating profit in 2018, latest half-year also improves

By

Sandra Halliday

Published
Nov 1, 2019

AllSaints was back in the black as far as operating profits were concerned in its latest year as its sales edged up, accounts filed at Companies House show.

And perhaps more importantly, the first half of the current financial year has continued on an even better upward trajectory. The six months to August 3 saw sales rising 15% as the company boosted its wholesale, franchise, licensing and Asian travel retail operations with sales for this combined business stream (which it calls ”non-retail”) surging in the period. 

And its like-for-like sales have risen 14% in the latest six months as the firm invested in its key clothing lines and also added to its footwear and accessories offer and moved into the perfumes and watches segment.

That LFL growth is being seen in all regions and all channels and includes the firm’s physical stores, which is some achievement in current market conditions.

But what about the main 12-month results for the period to early February 2019? They weren’t as impressive, but still showed progress being made.

Revenue rose only 1.2% to just short of £331 million, but the gross profit margin rose to 65.3% from 64.9% in the previous period as the company sold more pieces at full price.

That helped operating profit for the 52 weeks to hit £3.6 million, compared to a loss on the same basis of £6.2 million in the previous year. However, its EBITDA before exceptional items was only flat at £20.6 million and it remained loss-making on a pre-tax basis. But at least the £26.1 million loss was smaller than the prior year’s £32.8 million.

It’s a reasonably good result for any UK fashion retailer given the trying times that the sector has faced since the EU referendum and in the face of the e-commerce revolution.

Yet despite being UK-based, All Saints doesn’t have to rely on its British ops and actually has an extensive international business. During the year in question, it operated 255 stores in 26 countries and non-UK sales accounted for more than half of its total turnover. It saw a particularly strong result in Asia where sales progressed by 10%, although revenues in the UK/Europe and North America were flat.

It also proved buoyant in the so-called non-retail channel that saw a 40% sales leap. And online was strong too with a 15% rise. 

CEO PeterWood highlighted that it was the sixth consecutive year of top-line growth against a backdrop of challenging market conditions.