Edinburgh Woollen Mill pre-tax profit up but sales slip

REPORT_ Edinburgh Woollen Mill has reported that its pre-tax profits increased 26 percent to 71.3 million pounds (111.5 million dollars) in the 52 weeks to March 1, 2014. EBITDA increased 45 percent to 86.9million pounds (135.9 million dollars) on the back of constant focus on customers and costs. The company has also attributed its positive like-for-likes results to its ‘multi-brand, multi-country, multi-channel-model’.

However, sales across the group decreased from 566.7million pounds (887 million dollars) to 551.9million pounds (863.7 million dollars) which the retailer said was because of the result of store closures and impact of a 53-week trading period in the prior year. While the Edinburgh Woollen Mill opened doors to 34 stores during the period under review and plans to launch almost 100 doors on domestic as well as overseas destinations.

Commenting on the results, Edinburgh Woollen Mill Group commercial director Steve Simpson said, “From discerning baby-boomers to cost conscious mums, our brands continue to be guided by the needs of their customers and are being repaid with their loyalty. Whilst each of our brands has a distinct customer focus, they are united by a common commitment to excellence in product quality, customer experience and value for money. 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.”

Sales at its value fashion brand Peacocks increased 4 percent while like-for-likes showed positive indications. Online sales soared 221 percent. Peacocks will have more stores next fiscal year in addition to the already existing 451 UK and 14 overseas stores. At the group’s Edinburgh Woollen Mill business, famous for its Harris Tweed and cashmere ranges, sales went down from 169.7million pounds (265.6 million dollars) to 168.5million pounds (263.7 million dollars).