AllSaints under pressure as profits plunge
today Nov 12, 2018
British contemporary brand AllSaints has seen its full-year profits plummet, hit by property losses and falling in-store sales, in yet another another example of tough times for UK retailers.
Despite an 8% increase in sales to £327m, underlying profits fell by more than half from £26m to £10.6m in the year to February 2018, reported City AM.
The company, known for its leather jackets and pared-back aesthetic, was acquired by private equity firm Lion Capital for £105m in 2011. When announcing the transaction, Lion Capital said the business had potential to make £500m in sales within three or four years.
In September, AllSaints promoted chief operating officer Peter Wood to the role of CEO after William Kim was poached by the parent company.
The company is clearly working hard to grow its business and over the last 10 months, AllSaints has signed two licensing deals with Hong Kong-based Global Brands Group and Revlon to develop a line of accessories and fragrances, respectively.
The brand has over 240 stores, including franchises and concessions, in 27 countries.
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