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Hotter Shoes owner Unbound Group sees revenue growth of 10.4% in H1

Tom Shearsmith
20 September 2022

Unbound Group, parent of Hotter Shoes, has today announced half revenue growth of 10.4% to £27.6 million after making “good strategic progress” despite "challenging market conditions".

The company also reported an expansion of gross margin to 63.4%, representing growth of 180 bps over the prior year, driven by progress in efficiency plan and delivery of product strategy, resulting in gross profit growth of £2.1m.

Unbound saw an EBIT loss of £0.3m after costs incurred in technical launch of the Unbound platform (£1m) and non-recurring PLC costs of £150,000.

Other business highlights from Unbound Group include:

  • A Successful equity raise of £3.1m (net of expenses) post half-year, enabling the execution of its strategic growth plan as market conditions improve.
  • The Unbound trading platform roll-out is on track with technical delivery and costs complete on schedule in July, with partner brands continuing to be on-boarded throughout Q3 and Q4.
  • Hotter Shoes channels growing YoY, with notably strong performance in Retail +71.6%, adjusting for COVID related closures in FY22 +17%

The company confirmed it has seen tougher trading conditions in recent weeks, with the short-term outlook becoming very challenging to predict. Looking ahead, its medium term growth objectives remain unchanged, with 10% sales growth achieved in H1 despite challenging economic circumstances.

Ian Watson, Chief Executive Officer of Unbound Group plc, commented: “Unbound Group has delivered an encouraging first half performance that builds on the momentum of 2021, despite the increased challenges of high inflation and a volatile and unpredictable consumer environment. The combination of further growth in sales and gross margins demonstrates the effectiveness of our strategic initiatives and the value that our customers attach to our core Hotter product, giving us confidence despite the market conditions, which have become more challenging in recent weeks.

“We have made good strategic progress in H1 and will continue to focus on efficiency gains and cost management in H2 to protect margins. We are confident in our brand and the benefits that will result from this focus and our continued ability to deliver our strategy over the long term.

“The broader revenue base we have created with the launch of the Unbound platform marks an important strategic shift for the Group. However, we remain mindful of the growing pressures on consumer spend. Consequently, we continue to review and adapt to the changing market conditions, maintaining our specialist focus on our core customer demographic of financially resilient 55+ consumers.”

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