Monsoon Accessorize reports strong sales driven by turnaround strategy
Monsoon Accessorize has reported £196 million in annual sales for the 12 months to December 2021, driven by the turnaround strategy instigated by its parent company Adena Brands, which purchased the Monsoon and Accessorize brands out of administration in 2020.
The turnaround strategy's five pillars - product and brand renewal, digital transformation, retail portfolio restructuring, international restructuring, and central cost reduction - had all contributed ahead of expectations, Adena said.
The group reported that both brands had performed well over Black Friday and Christmas, with digital sales increasing by 43% for the 12 weeks through December, now representing approximately half of revenue and more than 70% for Monsoon.
Earnings before interest and tax (EBITDA) for the calendar year was £17.4 million, supported by a strong margin performance and a lower, more flexible cost base.
Adena said that the financial results reflected the success of the company’s turnaround strategy over the past two years throughout a challenging trading period for UK and global retail. It expects growth over the next years to continue with a focus on digital, new retail locations and international expansion.
The company is further planning to expand its 150 strong UK retail portfolio by opening 20 new stores in 2022, following 11 openings in 2021. It will also continue to expand in Europe and the Middle East, including opening multiple new stores in travel locations similar to the recently opened store in Zurich Airport.
Nick Stowe, CEO, said: “This has been a difficult year for everyone. But we have navigated the challenges in retail successfully and have been able to accelerate and go further with our turnaround than we expected. Our focus initially was just on saving Monsoon and Accessorize, two iconic brands; but we have been able to transform how we operate, refreshed our product, become more digital, opened new store formats, and become more agile as a team and business. Now that we have restructured and returned the business to profitability, we’re planning further growth with a solid foundation and renewed confidence.”
Peter Simon, Founder and Chairman, added: “We took a leap of faith in 2020 to rescue Monsoon and Accessorize at the height of the pandemic. Over the past two years our team has worked tirelessly to save the business, return it to a solid footing and secure the long-term future of the brands. The impact of the pandemic is by no means over, and we face serious challenges as do all other retailers and brands, but I am encouraged by the progress we have made, and I would like to thank Nick and the whole team for their hard work as well as our customers for keeping faith in us.
“Our priority was to save the business, secure over 2,300 UK jobs and maintain our presence as a leader on the high street: we have achieved that. We would not have been able to do this without the continued support of all our landlords and suppliers, and I also want to thank them for believing in us."