LONDON — British online and catalogue retailer Boden saw a 31 percent rise in its pre-tax profits to 32 million pounds, or $52.8 million in the year to Dec. 31 2014, buoyed partly by a strong performance in the retailer’s French and German markets and operational efficiencies.
Group sales for the period edged up 0.7 percent to 280.7 million pounds, or $463.1 million, while the firm said its gross profit margin for the year was 2.4 percentage points higher than in 2013.
All dollar figures have been calculated at average exchange rates for the period.
During the year, sales in France climbed 34 percent, while Boden said Germany “continues to perform well.” The company also noted it has “substantially increased sales and profitability from Mini Boden,” its children’s wear line. In terms of operational efficiencies, Boden said that it increased productivity at its U.S. warehouse and controlled its marketing costs for the year.
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Boden’s cash position at the end of the year was 50.5 million pounds, or $83 million.
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As for current trading, the firm described it as “tough, with margins coming under pressure in all markets although continued sales growth is expected.” Boden’s U.S. market had a strong first half to June, and saw a 13 percent rise in new customers.
Boden also plans to open retail outlets in “key markets” over the next few years, as it aims to “develop as a multichannel retailer.”
As part of its results announcement, Boden reported a number of management changes. Julian Granville, who is currently chief executive officer, has been named deputy chairman, with immediate effect. The firm said it is in the process of appointing a new ceo, and once that person is named, Granville will step down from the role.
Johnnie Boden, chairman of Boden commented: “Julian has been with Boden for over 20 years and this is a natural transition and part of our structured succession plan,” adding “we are in the process of appointing a ceo who will work closely with both Julian and myself.”
In addition, Matthew Hilgeman was in June appointed as product director. Hilgeman joins Boden from American Eagle Outfitters and will take responsibility for all of Boden’s product areas and its sourcing and supply chain. Granville said that Hilgeman “brings invaluable international brand experience as we continue to expand our overseas operations, particularly in the important and growing U.S. market.”
Commenting on Boden’s results, Granville said: “The increase in profitability shows that the operational efficiencies and investments that we have put in place are delivering returns,” he said, calling the retailer’s performance for the year “strong.”