AllSaints sales jump 20% despite store closures during the pandemic
AllSaints sales jumped 20% to £312m in the year ending 29 January 2022 despite store closures and social restrictions imposed during the pandemic.
The group achieved total revenue of £337m in the period, including a four-month contribution from New York alternative menswear brand John Varvatos, which the British contemporary brand acquired in October 2021.
Retail sales (including stores and e-commerce) during the period were up 15% to £268m while non-retail (wholesale, franchise and licensing) revenues up 59% to a record £45m. Operating profit also increased to £10.1m (2021: £0.7m).
The business ended the period with a net cash position of £31.1m compared with £7.0m net debt at the end of the previous period, a £38.1m improvement year-on-year.
So far this year, the group has got off to a strong start with AllSaints sales up 36% in the six months to end of July 2022 and John Varvatos up 13%.
While the prior year comparatives include periods of stores closures, the business said the increase was higher than anticipated with footfall to physical retail locations better than forecast, "robust" digital conversion, and "good growth" from non-retail channels.
During the year the group also made strides in its commitment to sustainability and diversity establishing an Environmental, Social, and Governance (ESG) group to "internally to monitor and encourage" group-wide efforts to improve product and packaging sustainability, ethical trading and reduce carbon emissions.
As a result, 66% of the AllSaints Spring 2022 collection was certified as sustainable compared with 25% of the AllSaints Winter collection in 2021. Further progress is expected in 2023.
AllSaints also recently launched its “AllSaints Spitalfields” limited edition pieces, which have been produced in the group’s East London HQ atelier space and have been "well-received" by the group’s customers. The pieces all use British fabrics and therefore a low carbon footprint while supporting local manufacturers.
The group also reported that 41% of its workforce as now BIPOC, 18% LGBTQ+, 15% living with a disability or neurodiversity, while 61% are female (58% at operating board level) with zero median pay gap.
AllSaints CEO Peter Wood said of the performance: “I am proud of the way our team has moved on from the challenges of the pandemic to deliver a strong financial and operational performance. It has been achieved as a result of our strategic focus on product, marketing and distribution, which drove increased customer reach and improved inventory productivity. This, combined with our robust omnichannel operating model, enabled us to mitigate the adverse impact on physical retail channels during the pandemic.
“We were thrilled to welcome the John Varvatos brand to the Group during the year, which has already delivered a return to profitability under our stewardship. This demonstrates our ability to help great brands and teams achieve their true potential, and I am confident that the clear synergies between AllSaints and John Varvatos will contribute to the future growth of the Group.
“We see it as our responsibility to not only help our customers look good, but also feel good, safe in the knowledge that we have carefully considered the materials and production processes that we use to create our collections. We are also committed to employing talented people from all backgrounds, as well as positively contributing to the communities that surround our stores around the world. These priorities permeate everything that we do, and I am delighted to see our customers responding so positively to the passion and dedication of our team.”