EDINBURGH Woollen Mill Group has announced plans to open 76 stores in the next 12 months after posting a second successive year of record profits amid challenging conditions for retailers.
EDINBURGH Woollen Mill Group has announced plans to open 76 stores in the next 12 months after posting a second successive year of record profits amid challenging conditions for retailers.
Based in Langhom in the Scottish Borders, the group made £71.3million pre tax profit in the 52 weeks to 1 March compared with £56.7m in the preceding period following strong performances by operations such as the Edinburgh Woollen Mill and Peacocks chains.
Group sales fell to £551.9m from £566.7m, but the company said underlying year-on-year sales increased stripping out the effect of store closures and a 53-week trading year in 2013.
The results cover a period when consumer budgets were under pressure.
Commercial director Steve Simpson said: ??Alongside a truly multi-channel model, continued investment, innovation and strong cost control, the Group has once again delivered a strong sales performance and outstanding profit growth.??
The group, owned by retail tycoon Philip Day, said growth at the Edinburgh Woollen Mill chain is being driven by the expanding over 40s market and an increase in foreign visitors to shops in UK destination towns, including Oban and Fort William.
After extending EWM??s ranges to appeal to more men and women in the over 40s age group in the year to March, the company believes the formula could have broader appeal.
Mr Simpson said: ??We are particularly encouraged by the sales and profit performance of the Edinburgh Woollen Mill business, which has grown consistently to become a category leader in the over 40s customer segment. Leveraging its strength into a broader demographic, both at home and overseas, in store as well as online, is a key focus of the Group in 2015 and beyond.??
The group said the Peacocks chain it bought out of administration in 2012 had also been performing well, with a focus on ??value fashion for the entire family??.
It says Peacocks??main customer profile is the younger mum shopping for herself and her family.
The group appears confident it is in good shape to make further expansion moves.
In a statement announcing the results it said: ??The Group??s balance sheet strength and credit covenant continues to improve ... making the Group extremely well placed to take advantage of future opportunities over the coming years.??
The group disclosed it paid £5.6m dividends in the latest period on shares held by an employee benefit trust that it ultimately controlled.
Directors earned aggregate emoluments totalling £689,000, down from £722,000 in the preceding year.
The highest paid director earned £229,000 up from £228,000.
The company did not update on trading at the Jane Norman womenswear business in the statement.
The group bought Jane Norman out of administration in 2011. It put Jane Norman??s 24 stores into administration in June, leaving online operations and concessions trading.
Edinburgh Woollen Mill Group said it operates over 1,000 stores across the UK, 100s of concessions and a range of e-commerce sites. It employs over 10,000 staff across the UK and Republic of Ireland.
The portfolio includes the Ponden Mill home textiles chain and the Proquip golf supplies business.
The group did not give details of the planned store openings.
It has around 80 Edinburgh Woollen Mill outlets and eight Peacocks stores in Scotland.
The group also operates the Ponden Mill home textiles chain.
Mr Day led a £67.5m management buyout of Edinburgh Woollen Mill from Rutland Fund Management in 2002.
The Edinburgh Woollen Mill was founded in 1946 by the Stevenson family as the Langholm Dyeing and Finishing Company.
In 1996, the Stevensons netted around £33m when Grampian Holdings bought the firm for £69m.
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