UK: House of Fraser books 4.3% rise in FY earnings
- Adjusted FY EBITDA grew 4.3% to GBP61.1m
- Sales rose 3.3% on a like-for-like basis to GBP1.2bn
- Online sales jumped 53%
Sales rose 3.3% on a like-for-like basis at House of Fraser
UK department store retailer House of Fraser has today (22 May) posted a 4.3% rise in full-year profit, boosted by record like-for-like sales growth.
The company saw adjusted EBITDA climb to GBP61.1m (US$92.3m) during the year to 26 January, up from GBP58.6m last year.
Sales rose 3.3% on a like-for-like basis, excluding VAT, to GBP1.2bn. Online sales jumped 53% - representing 10.9% of sales, while its own house-brand sales were up 4%.
"We are pleased to report record sales and margins for the year despite the difficult market conditions," said CEO John King.
"The growth has been driven by continued success of our key strategic pillars. Our award winning multichannel business has performed exceptionally well and has substantial future potential, including internationally. Our house brands grew significantly in the second half of the year and this trend has accelerated during the first quarter.
"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."
The company said like-for-like sales rose 4.8% in the 13 weeks to 27 April.
Looking ahead, chairman Don McCarthy added: "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."
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