House of Fraser achieves record full year sales as it plans expansion into China
Department store chain House of Fraser has reported that like-for-like sales increased by 5.8% in the year to end January as it announced that it will open three stores in major cities in China.
Group transaction value rose to £1.3 billion while gross profit increased by £29.6 million to £460.2 million.
While like-for-like sales in bricks and mortar stores rose by 2.2%, online sales increased by 32% to account for 15.4% of sales.
Adjusted EBITDA was £64.4 million, which was a 7% increase on the prior year.
The company said it is planning to increase UK investment in its multichannel proposition and store refurbishment programme with six store upgrades planned in the coming year. In addition, there are plans to launch a second franchise store in Abu Dhabi, further stores in the Middle East, and three large stores in Nanjing, Chongqing and Xuzhou in China. It will also start to trade online in China and other international markets, beginning with Australia.
Reporting on current trading, House of Fraser said sales in the 11 weeks to 18 April 2015 had risen by 6.5% with a further improvement in gross margin rate in the period.
House of Fraser chief executive Nigel Oddy said: “We are confident that the group’s business model, with our premium brand positioning and strong multichannel operation will ensure that House of Fraser continues to grow and develop for the foreseeable future. We are very excited by the future as we embark on the next phase of growth both in the UK and internationally.”
