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Anya Hindmarch profits double as designer rethinks expansion Tuesday, 25th October 2011
The luxury leather accessories group more than doubled pre-tax profits for 2010, but will rethink its international expansion strategy.
Accounts filed at Companies House on Monday showed pre-tax profits of £830,000 on revenues up 12 per cent to £20 million to the year 31 December. However, as the threat of European double dip recession looms, incoming chief executive James McArthur has put plans for 10 new international stores on hold until next year.
Formerly chief executive at Balenciaga, McArthur joined the business in May and will take over from founder Anya Hindmarch, who is now chairman and creative director. Instead of expansion, McArthur will concentrate on making the brand’s 55 existing stores more profitable.
”We can expand considerably by increasing the sales densities in our existing stores, and we are looking to expand our wholesale distribution internationally,” he said.
Stores in Tokyo and Kuala Lumpur opened in 2011, but the priority will be expanding into mainland China and signing a wholesale distribution agreement with an upmarket US department store.
“The business is on a very sound platform for expansion, and our Britishness and quirkiness is absolutely fundamental to that,” said McArthur.
Over half of the company’s sales revenues are generated in the UK, where 2011 sales are around 10 per cent ahead of the previous year on a like-for-like basis. “We are about to come into the most important part of our trading year, but I expect to see low double-digit sales growth for the full year,” McArthur said of the year ahead.