Fashion group considers design deal
Fashion group Marchpole today said it was close to adding to its wardrobe of haute couture brands after posting a 79% hike in annual profits.
London-based Marchpole remained tight-lipped on the identity of its target but said talks were in the final stages and it hoped to announce a deal soon.
It comes less than nine months after Marchpole clinched a deal to produce two collections per season for prestigious menswear label Emanuel Ungaro.
Ungaro collections will appear on the catwalk at the Paris fashion week in July and are expected to contribute to sales growth in the new financial year.
Profits increased to £4.7m (€6.99m) during the year to March 31 from £2.7m (€4m), while sales were up 62% at £32.5m (€48.3m) and Marchpole said the order books for its autumn/winter collections were already ahead of last year.
Marchpole designs, makes and sells clothing and accessories for six world class brands including Yves Saint Laurent (YSL), Jean-Charles de Castelbajac (JCC), JC de Castelbajac/Rossignol, Boateng, Emanuel Ungaro and Ungaro.
It has held a menswear licence with YSL – its biggest brand – since 1985, producing affordable clothing rather than designing a catwalk collection.
Chief executive Greg Tufnell said the successful conclusion to the acquisition talks would make the group less reliant on YSL for revenues and profits.
He said: “Securing the future beyond YSL is the key issue and I think the name involved, as well as the strategic value, will certainly make people sit up and take notice.”
Although the turnover growth during the past 12 months was achieved by strong performances from all its brands, Marchpole said much had come from the first full year of sales of Jean-Charles de Castelbajac clothing.
Plans were in place to develop new markets for this brand and showrooms dedicated to JCC have opened in London, Paris and Milan.
John Stevenson, of house broker Shore Capital, said Marchpole was resisting the current retail malaise and sales of its brands at major customers such as Debenhams were holding up well.
He added: “Management has already made good progress in securing the strategic future of the group as evidenced by the new Ungaro licence and JCC acquisition.”
Marchpole, which employs 110 staff, sources most of its casual wear from Hong Kong while its tailoring is completed in Italy. In addition, the group has a base in Portugal to buy fabrics.
