Fashion chain Monsoon today posted record half-year results after pre-tax profits leapt 19% on a year earlier to £21m.
The group, which also owns Accessorize, has been further encouraged by trading over the Christmas period, which saw like-for-like sales improve 2% in the five weeks to 3 January.
That was slower than the 6% increase reported in the previous six months – but comes during a challenging period for the clothing retail sector.
During the half-year, turnover lifted 22% to £131.1m after Monsoon opened 16 new stores in the UK and Ireland and 30 outlets internationally.
The group signalled the possibility of further overseas expansion with news that it was in “early negotiations” for major capital acquisitions.
Monsoon did not provide details but said the move would offer “substantial benefits in the long term”.
In light of the negotiations Monsoon said it would not be paying a dividend at the half-year stage.
In the UK and Ireland, operating profits increased 14% to £18.7m with turnover from 293 outlets up 21% to £120.9m.
There are currently 129 Accessorize outlets with 101 Monsoons, 62 combined Accessorize and Monsoon sites and one department store concession.
As part of its expansion, the group recently opened two larger flagship stores at Marble Arch, London and in the Bullring Centre, Birmingham.
New till systems have also been installed across the UK in a move that will improve stock control and enhance customer service.
Internationally, operating profits from 136 stores increased 18% to £1.9m with turnover – mainly achieved on a franchise basis – up 31% to £10.1m.
Chairman Peter Simon said the performance over the six months gave the company confidence that it had the right strategy in place.
He added: “We shall continue to develop our product, invest in new stores and refits utilising our financial resources to fund our capital expenditure requirements.”
References: EGi News 19/01/04
