Boden, the fashion retailer for the middle classes who like a splash of colour, is planning to open more stores in the UK and US.
“We’re set to open a number of Boden retail outlets in the next few years in key markets,” said a spokeswoman. “We’ll look at it on a case by case basis,” she added.
The privately owned company, which so far mainly sells to its 1.6 million active customers direct via its catalogue or online, has only one store, in the Hanger Green area of west London. The decision to expand its physical presence comes as it revealed a rise in profits of 31% to £32m on sales of £280.7m.
However, the group warned that current trading has been tough with margins coming under pressure in all markets. It added that continued sales growth was still expected.
More than 50% of the group’s sales come from outside its home market: French sales were up 34% on the year, and the company increased its customers by 13% in the US market.
Mini Boden, the range for children, had substantially increased sales and profitability. It said it had continued to increase in web traffic: there were 23 million unique visitors in 2014, 15% up on the previous year with online accounting for 90% of sales.
Boden said it had benefited from increased productivity in the group’s US warehouse; getting costs under control; and improvements in the delivery times in the UK (two-to-three days are now standard).
Boden said on Monday it has begun searching for a new chief executive to replace Julian Granville who has been appointed deputy chairman.
Granville came on board 20 years ago to help Old Etonian founder Johnnie Boden with the business on the brink of collapse. He helped bring in funding from Piper, a private equity group, and helped Boden establish itself as a premium mail order and digital only brand. Johnnie Boden is currently the group’s largest shareholder with a 60% stake.
“There’s a process going on and we will make an announcement as soon as the new CEO is in place,” said the spokesperson, adding that Granville’s move was part of a structured succession plan.
Granville said of the past year’s trading: “The increase in profitability shows that the operational efficiencies and investments that we have put in place are delivering returns.”
The company said it had appointed Matthew Hilgeman, who joins from American Eagle Outfitters, as product director.
