Article20 Jun 2018 08:49
Footasylum’s outlook has sent its share price tumbling.
On the face of it, Footasylum’s maiden results on AIM were relatively robust. Revenue shot up 33% to £194.8m for the 52 weeks to February 24, though adjusted pre-tax profits edged up just 4% to £8.4m.
Footasylum has opened 10 new stores
Against the backdrop of sliding consumer confidence and a battering of the high street, which has recently affected everyone from House of Fraser and Marks & Spencer to Toys R Us and womenswear chain East, many retail chiefs would have breathed a sigh of relief if their company had performed so strongly in today’s challenging market.
Digging into the results, the underlining detail showed promise: the company, which sells ‘on trend’ branded footwear and clothing, had opened 10 new stores, refitted two and upsized seven. A calculated approach rather than pushing the accelerator, which could lead to backpedalling in the future, is an approach many retailers, with the added benefit of hindsight, will be wishing they had adhered to.
Key areas of success include its website, with online sales jumping 41% and accounting for 30% of total sales. Online continues to be an area of focus for management, with increased investment and more money being pumped into its online platforms through the launch of an own-brand website and apps for its Footasylum, Kings Will Dream and Seven brands.
Footasylum has strong online ambitions – it plans to boost sales so they account for 50% of revenues – and its heavy investment in digital is clearly paying off. When catering to a target market of 16 to 24-year-olds, brands need to ensure they have a strong multichannel proposition in order to attract customers and win over competition and Footasylum is taking the right approach.
Should have shot up c4% imo
Great day all.
Firwood
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