Flat sales, gross profit and gross margin improvement achieved in a challenging retail environment;
Confident for growth in H2
House of Fraser (UK & Ireland) Limited, the UK and Ireland’s premium department store group, today updates the market on its performance for the 26 weeks to 30 July 2016.
Financial highlights include:
Total sales in line with prior year, with total GTV of £573.5 million;
Excluding Virgin Travel, like-for-like sales grew by 0.9%;
Online sales continued to grow, increasing by 17.8% on a like-for-like basis, and now represent 20.7% of
Cash margin rate of 34.4%, an increase of 50 basis points on the prior year;
Gross Profit of £207.2 million, an increase of £2.5 million on the prior year; and
EBITDA decreased to £1.1 million, due in part to a £3.9 million reduction of financial services income (in
line with management expectations) following the expiry of our previous financial services contract in June
2015 (H1 2015/16: £9.2 million).
Operational highlights include:
Total sales were in line with the prior year despite the very challenging retail environment:
o Like-for-like Branded and Concession (excluding Virgin Travel) sales increased by 2.1% and 1.3%
respectively, while House Brand sales declined by 3.7%;
o Home was the strongest-performing category with sales growth of 4.5%; and
o Menswear and Beauty sales grew by 1.8% and 1.9% respectively.
The product proposition in both stores and online is being further enhanced with the rollout of exciting new
premium brands including Charlotte Tilbury, All Saints, Monsoon, and Mulberry:
o 153 shop-fits launched across the store portfolio in H1, with a significant number of additional
shop-fits planned for H2.
Six Hamleys concessions to launch in stores during H2, as House of Fraser looks to further improve its
space utilisation and enhance its retail offer.
The Group continued to invest in enhancing its store portfolio, including:
o Five additional store refurbishments with target completion by end of October / early November,
making a total of 12 refurbishments over the course of two years; and
o Anchoring a new shopping centre development in Rushden Lakes in Northamptonshire, which is
due to open in summer 2017.
Continued strengthening of the senior operational management team with the recent appointments of
David Walmsley as Chief Customer Officer and Maria Hollins as Executive Director, Product & Trading,
with the remit to review strategic priorities and to deliver improved results for our customers, brands and
Good progress made in the store opening plan in China (through House of Fraser Group Limited), with the
first store to open in late 2016, as planned. Inspired by our iconic Frasers store in Glasgow, the new store
in Nanjing will provide a unique retail experience for the Chinese market, offering a broad range of exciting
international and local brands to our customers. The official opening ceremony will take place at the end of
About House of Fraser: House of Fraser is a department store group with 59 locations across the UK and Ireland plus one small dot.com concept store. As one of the best known names on the high street, House of Fraser has presented customers with an unrivalled nationwide department store for 165 years. The company completed the sale to Nanjing Cenbest on 2 September 2014 marking the exciting beginning for the company under Chinese ownership. The Group’s record annual sales (ex VAT) for 2014/15 were £1.3bn and the Group employs 6,800 House of Fraser staff and 13,000 concession staff trading on over 4 million sqft of selling space. Customers can shop at House of Fraser from www.houseoffraser.co.uk . The Group also has a franchise store operating in Abu Dhabi and its partners plan to open a second store in that region during 2015. For further information please contact: Gareth Hayes, Junior Press Officer, email@example.com/02070034652