UK’s Mountain Warehouse posts record results as sales soar
The UK’s largest outdoor retailer, Mountain Warehouse, announced on Monday the results for the financial year to February 28, 2016.
Despite the tough UK retail environment and highly unpredictable weather, the company delivered a fourth year of record results with sales soaring by 28.7% to £141.4m. On a like-for-like basis, sales grew by 19.3%.
Mountain Warehouse attributed its success to the introduction of more summer ranges, particularly for children. “There would have been a time when I was terrified by a hot, sunny day. But we have worked very hard to weather-proof the business, ensuring that we have great products come sunshine or snow, hail or heat wave” said Mountain Warehouse founder and chief executive Mark Neale. “This has certainly paid off in recent weeks when the weather has been very changeable.”
The retailer also added more products for cyclists and a bigger ski range, securing strong sales during periods of both wet and sunny weather.
Online sales grew 47% in the year, and now account for 20% of sales.
The positive performance helped the retailer achieve EBITDA of £20.0m, up 20% from the previous year. Pre-tax profit was up 36% to £16.2m.
Mark Neale commented: “Trading in the new financial year remains strong. The popularity of our kids’ ranges has been particularly pleasing, helped by the successful launch of our new range designed with Steve Backshall. We are looking forward to a strong summer as families start to think about the holidays and turn to us for everything from t-shirts to shorts and sandals to swimsuits.”
The outdoor chain trades from 242 stores in the UK and overseas. It announced plans to launch 40 more stores across its portfolio this financial year, with nearly half of them opening in North America, Ireland and Germany.
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