UK: Aurora “transformed” by first-year earnings
- EBITDA of GBP38.6m
- Global retail sales GBP661m
- Hails international and online successes
The Karen Millen operator has enjoyed a strong opening year
Aurora Fashions, the retail business salvaged from the defunct Mosaic Fashions empire, recorded EBITDA of GBP38.6m (US$59.8m) in its first 11 months of operation.
The result, ahead of plan for the owner of Karen Millen, Coast, Oasis and Warehouse, included GBP661m in global retail sales for the period from the company’s formation to 30 January.
Gross profit was GBP303.7m and operating profit was GBP22.6m, impacted by exceptional restructuring costs of GBP57.9m and finance costs of GBP9m.
Aurora said margins had been “challenging” in the first few months of the year, thanks to adverse exchange rates, but had improved in the second half.
International sales rose 10%, representing more than one-third of global retail sales, driven by strong organic performance and a number of new store openings.
Online retail sales surged 23% to GBP42m, prior to this year’s launch of the first local language websites in Europe, plus dedicated US websites with local fulfilment for Karen Millen and Coast.
Chief executive Mike Shearwood said he was “delighted” to exceed the targets set when Aurora was established in March last year.
“Our continued expansion in international markets and innovation in the field of e-commerce has helped to widen our customer base, increase the awareness of our brands globally, and we continue to break new ground in the retail sector,” he added.
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