A rapid expansion programme has led to an adverse impact on profits at Aldi for the third consecutive year, despite another rise in sales and market share. In its full year to December 31, 2016, the German retailer’s operating profit dropped 17 per cent to £211.3 million, while gross profit slipped seven per sent to £324.5 million.
A rapid expansion programme has led to an adverse impact on profits at Aldi for the third consecutive year, despite another rise in sales and market share.
Toy retailer Smyths almost doubled pre-tax profits in its UK operations last year, thanks to sales of Star Wars Lego, Power Rangers and Hatchimal. The Irish chain, which has over 80 stores in the UK, raked in €11.2 million (£10 million) in pre-tax profits in the year ending December last year — up from £5.96 million the year before. Sales in the mainland UK also went up by 19 per cent from £334 million to £396.49 million (€447 million) on the back of 12 new store openings
House of Fraser has recorded widening losses and a drop in like-for-like sales in its half-year report, as the cost of its transformation scheme begins to bite. Despite this, new chief executive Alex Williamson said there was “much to be optimistic about”, as the department store retailer was in the process of building “the right foundations” to help meet its ambitions for sustainable profit growth.
TK Maxx’s UK arm has recorded a fall in profits and a dramatic slowdown in comparable sales due to rising wages and costs arising from expanding the business.
Online bedding retailer Eve Sleep has recorded an increase in pre-tax losses in its first half despite a massive jump in sales. The brand, which is also available through department store concessions in the UK and now in Germany, posted pre-tax losses of £9.1 million in the six-month period to June 30, compared to the £3.2 million recorded in the same period last year. Meanwhile, sales sky rocketed 126 per cent to £11.5 million during the period, with UK sales alone spiking 107 per cent while international sales soared 153 per cent.
Dunelm has attributed the costs related to the acquisition of Worldstores and declining store sales for its significant drop in profits in its last financial year. For the full-year period ending July 1, the furniture retailer recorded a 28.3 per cent fall in pre-tax profit to £92.4 million. While overall revenue for the fiscal year rose 8.5 per cent to £955.6 million, like-for-like sales slipped 0.5 per cent and comparable store sales fell 2.4 per cent.
Discount fashion retailer Primark has boosted its full-year outlook following a “particularly strong” trading period in the lead up to Easter.
Gear4music’s total revenue surged by 44 per cent to £31.219 million in the first half of its financial year.
Sales at the revived online-only business of BHS has jumped by more than a third in its second quarter. According to managing director Kevan Mallinder, the sales spike of 35 per cent during the period was boosted by the performance of BHS.com’s womenswear division, which sky rocketed by 350 per cent during the quarter.