House of Fraser sales up 5.8 percent in FY15

Tuesday, 21 April 2015
REPORT House of Fraser, the UK and Ireland’s premium department store group, for the 53 weeks to January 31, 2015 increased sales by 5.8 percent on a like-for-like excluding VAT, with total GTV rising to 1.3 billion pounds (1.9 billion dollars). Online sales excluding VAT increased 32 percent  on a 52 week basis, representing 15.4 percent of sales. Sales in bricks and mortar stores were up 2.2 percent on a like-for-like basis.

Sales growth was witnessed in all categories including continued growth in House Brand sales and cash margin, both up 10 percent for 52 weeks. The company reported gross profit of 460.2 million pounds (684.5 million dollars), up 29.6 million pounds (44 million dollars); and adjusted EBITDA of 64.4 million pounds (95.7 million dollars), up 7 percent on the prior year.

The company aims to further enhance the group’s website, including a redesign of the site and an expanded product offer with the introduction of many new brands. It launched new house brand launches including Dickins & Jones Home, as well as range extensions, with particularly strong performances from Linea and Biba in womenswear and Criminal and New & Lingwood in menswear. The company also strengthened premium branded proposition with new introductions including brands such as Polo Ralph Lauren womenswear and Michael Kors womenswear and menswear. The company continued progress internationally with detailed plans for three large stores to open in China and a second store in Abu Dhabi signed up.

The company expects strong momentum seen during 2014 to continue, with sales for the first 11 weeks to April 18, 2015 moving up 6.5 percent with a further improvement in the gross margin rate in the period.

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