Kurt Geiger posts record pre-pandemic profits
Profits at Kurt Geiger hit record heights in the year to 1 February 2020 - with company sales up 3.7% to £347m – prior to the emergence of the Coronavirus pandemic.
The company had also achieved total retail like for like growth of 3% and a stronger level of growth in Kurt Geiger fronted fascias of 7.2% on a multi- channel basis in the year - with growth having been fuelled by sneakers and handbags – up 35% and 20% respectively.
Company EBITDA grew by 11.5% to £40.2m - up from £36m the previous year.
Operating profit for the year was £29.7m -up 22% year on year, including the £2.4m impact of non-recuring items such as one-off international expansion costs and the launch of a new warehouse management system.
The company, which had prepared its budget prior-to the emergence of the Covid19 pandemic and following a "record" year in FY20, has since undertaken a review of the virus’ impact and for 2020/21 is now operating on a “going concern basis, with directors “satisfied” that it had the resources to “continue in business for the foreseeable future.”
Strict cash saving measures have been implemented to preserve liquidity and the company said it planned to continue investing in its digital strategy going forward, with all digital platforms currently delivering "strong rates of growth."
Commenting on the report and financial statements, Kurt Geiger chief executive officer Neil Clifford said: “This has been in many ways one of the biggest challenges in our history as a company, brand and employer – but it has also prompted us to re-focus on what is important, connecting with our customers through new and more meaningful ways as seen in our #smallacts of kindness initiative, rewarding our NHS and blue light customers and focus on our brands’ key messages of the Rainbow and “We Are One.”