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M&Co benefits from consumers’ hunger for value fashion and see FY17 revenue jump

By Angela Gonzalez-Rodriguez

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Value fashion continues to render profits. The last retailer to benefit from consumers’ desire to keep their sartorial buys within budget is Scottish affordable fashion chain M&Co, which has announced a 5.4 percent revenue increase for the year ending February 2018.

The company credits its investment in new, local stores for this revenue jump; it’s worth recalling that the brand opened 18 stores during the year, targeting local high streets.

Months later, the first positive outcomes came: annual sales went up to 211.4 million pounds, as like for like sales rose by 3.9 percent. Overall growth was fuelled by an 18.3 percent rise in online sales for the year, highlighted the group in a corporate release. Operating profit came in at 6 million pounds while EBITDA was “broadly flat” in M&Co’s words, at 10.8 million pounds for the year.

Commenting on the results, chief executive Andy McGeoch, said: “As we navigate the complexities of the current market and in light of recent announcements from UK retailers, it is hugely encouraging to see this growth,” reported by the Scottish Business News Network.

The group has invested 12.3 million pounds in capital expenditure including the implementation of a new all store state of the art electronic point of sale system (EPOS), new store fit-out and the purchase of further freehold properties. M&Co now owns more than a quarter of its retail estate. “Undoubtedly the High Street environment remains challenging, with high business rates, cost inflation, heavy discounting, economic uncertainty and international currency fluctuations collectively putting pressure on margins. As a result, our commitment to both drive efficiencies and to enhance our customer experience, has seen us significantly increase our IT investment to take advantage of new technologies,” summed up McGeoch in a financial release.

Looking ahead, the retailer anticipates a reduction in its debt level over the coming year, which will allow the retailer to invest in new opportunities through facility support from HSBC.

“Our mission is to deliver contemporary fashion products of quality that represents great value for money. We will continue to invest in customer insight to help further understand our customer profiles and to tailor our product offer to meet their evolving requirements,” advanced the company’s CEO.

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