Monsoon warmed by poncho look
Fashion chain Monsoon today said it had overcome tough trading conditions on the high street to post a 32% hike in first half profits.
The group, which also owns Accessorize, said demand for ponchos and accessories such as big bangles and necklaces had contributed to the record performance by its autumn and winter ranges.
The group opened 23 new stores during the period, leaving it with 136 Accessorize outlets, 117 Monsoon, 70 joint format stores and three concessions in the UK and Ireland.
Like-for-like sales – outstripping store openings and closures – rose by 11% in the six months to November 27 and this increased to 13% over the six following weeks.
The Christmas sales boost came despite recent claims festive trading was the worst in a decade for retailers.
Monsoon said: “We recognise that we are currently trading in difficult environments but we are confident that we will deliver a satisfactory performance for the full year.”
A spokesman for the company said the “very accessory-driven” look of the moment had contributed to the results. He added: “Monsoon really championed the poncho look.”
Pre-tax profits rose to £27.8m (€39.7m), while total sales were 29% higher at £169m (€241m).
In October, Monsoon started selling men’s clothing through one standalone store in London’s Covent Garden and around 20 other outlets. However, it said it was too early to say how successful this had been.
The group said the record performance gave it confidence that its expansion strategy was building long-term value.
A “satisfactory” start to the post-Christmas sale helped lift total sales 38% in the six weeks to January 8.
No interim dividend will be awarded in line with company policy. Monsoon recently warned that investors were unlikely to receive dividend payments for several years.
The London-based group said it looked forward to investing its money in long-term projects “at the appropriate time”.
Results for the year to May 28 are to be published in July.
