Hobbs returns to profit as retailer opens new concession stores
Fashion retailer Hobbs returned to profit last year despite a “challenging retail environment” as the firm ramped up its concession store expansion plan.
The womenswear brand reported a profit after tax of £4.9m compared to a loss of £4.8m the previous year when it was hit with costs related to its 2017 sale to TFG Brands, a subsidiary of The Foschini Group.
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Hobbs’ operating profit in the period was £6.9m, up from a loss of £3.8m.
Turnover increased two per cent from £132.6m in the 14 months to 31 March 2018 to £135.4m in the year ended 30 March 2019 as the firm opened new stores
During the period Hobbs opened one standalone store and added 23 new concession branches, and launched 10 concessions in three international markets. The retailer closed three concessions in the year.
In the previous year the company, which was founded in Hampstead in 1981, opened 13 concessions and shuttered six, according to Companies House filings.
Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) was £9.6m, up from £8.5m.
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In its strategic report Hobbs said: “Hobbs’ greatest strength is a loyal customer following and distinct brand identity. We will continue to invest in the development of unique clothing and accessories for our customer base.
“The enhancement of the range and multichannel proposition will continue in the period, whilst building on the heritage of the brand.”