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Thomas Sabo UK results improve despite ongoing sales fall

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Thomas Sabo UK’s accounts for the year to June 2024 have been filed at Companies House and they show the subsidiary of the German jeweller enduring another tough period on the sales front.

THOMAS SABO

The previous 12 months had also been difficult with turnover dropping, the cost of sales rising and profit on multiple measures down.

This time it was more of the same on sales — which it described as “disappointing” — but profits improved. Turnover fell to just under £9.236 million from almost £11.293 million, although the cost of sales did fall. Gross profit dropped to £1.474 million from £2.704 million but operating profit rose to £241,981 from £184,913. Profit before tax rose to £293,343 from £209,530 and net profit for the year was up to £275,457 from £209,530.

The company (which sells its own brand of fashion jewellery and watches through its retail shops, concessions in department stores, the webstore and through wholesale in the UK) said the year was a difficult one for most retailers but particularly for those specialising in fashion jewellery.

That market was “significantly affected by economic difficulties”. This means high inflation and high interest rates that had also affected the previous year leading to the cost-of-living crisis. It said domestic demand softened and along with changes to its store portfolio it had a negative impact on sales. 

But its tight control of costs meant that the inflationary rise in salaries was almost offset by other reductions in admin expenses. The company also received a margin adjustment credit from a group company, which boosted the year’s profit.

And it remains optimistic about the current year with it talking of expectations of a “significant recovery in sales”, and with continued financial support from the parent group it should be profitable.

That recovery in turnover should be seen both in the company’s stores and online based on its experience of the year so far. It said there have also been significant reductions in shop rents as leases have been renewed.

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END. plans packed year of events for 20th anniversary

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END. promised it would be going big on its 20th anniversary celebrations and judging by the fashion retailer’s itinerary of events it’s actually huge.

With three events already under its belt in the January-March period, there are over 20 in the pipeline for the rest of the year involving a programme of curated events, pop-ups, activations, collaborations and partnerships “crafted hand-in-hand with brand partners who have journeyed with END. over the last 20 years”.

Participants include a host of big brands including A Bathing Ape, Adidas, Aries, CP Company, Crocs, Needles, Puma, Salomon, Stone Island, Umbro, Universal Works, Y-3, “and many more”.

It’s all in recognition of a brand that has grown from an independent in Newcastle to an international name with flagship locations in Newcastle, Glasgow, Manchester, London, and Milan, “defining its position as a trailblazer bridging the gap between luxury and streetwear, balancing exclusivity with accessibility with its signature curation of the world’s biggest brands to the most sought-after emerging labels all under one roof”.

The 20th anniversary will also honour the brand’s North East roots and the best of British subculture “focusing on narratives deeply connected to the retailer’s heritage, customers and cultural influences, touching on nostalgic themes from the coast to the corner shop and nightlife to the classic British pub”.

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Coats Group announces ‘strategic exit from US Yarns’

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Global threads manufacturing giant Coats Group is quitting its US Yarns business, resulting the closure of its Performance Materials (PM) facility based in Kings Mountain, North Carolina. 

It comes after a strategic review of the wider Americas yarns business that has already resulted in the closure of the Toluca, Mexico facility in December. The review, which started in Q4 2024, concludes that the Americas Yarns business doesn’t fit with Coats’ future strategy, noting the exit from this non-core operation “will result in a positive annualised impact to both the PM and Group adjusted EBIT margins”. 

The exit process is expected to complete in Q2 and Coats said it anticipates to generate a modest cash inflow, after closure costs, that will “allow management to focus on driving forward and growing other parts of the group’s attractive portfolio.

In 2024, revenues and EBIT for US Yarns was $68 million and $3 million, respectively.

Last month, Coats delivered a trading statement that highlighted “strong delivery, exciting medium-term targets with compounding cash and earnings growth”.

While the business reported a string of positives for the year ended 31 December (total revenues up 8% to $1.5 billion; apparel and footwear revenues up 13%; EBIT up 16%), it also noted that the PM business continued to drag across all North America end markets while there was also structural softness in North American Yarns.

The writing was perhaps on the wall for the future of its US PM ops in a statement that included that its Americas manufacturing footprint had been “right-sized” in Q4 with the closure of the Toluca site “to align to structural softness in North American Yarns [that will] drive immediate margin improvement”.

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Poland’s top fashion retailer LPP aims to double revenue by 2027

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April 3, 2025

Poland’s biggest fashion retailer aims to double its revenue to 40 billion zlotys ($10.56 billion) by 2027, driven by the rapid expansion of budget brand Sinsay and its omnichannel strategy, it said on Thursday.

Reuters

“In three years we assume the company will be twice as big,” CEO Marek Piechocki said during a press conference.

Under LPP‘s new three year strategy through 2027, Sinsay is set to account for 75% of the group’s total sales, it said.

The Gdansk-based retailer aims to expand its store network to around 7,500 outlets by the end of 2027, with Sinsay stores making up around 6,000 of those, and to increase e-commerce sales to 10 billion zlotys in the same period.

“As in previous years, the company intends to consistently pursue its policy of sharing the profit generated with its shareholders,” LPP said, indicating plans to maintain its dividend payouts.
The management recommended a dividend of 660 zlotys per share to be paid for the 2024 financial year.

The company also aims to double its core earnings (EBITDA) by 2027, compared to last year’s 3.67 billion zlotys, while keeping its debt levels safe, it said.

LPP’s revenue rose by 20% to 20.19 billion zlotys in 2024.

 

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