Cotton Traders sees profits dip

PROFITS at multi-channel clothing and footwear retailer Cotton Traders have taken a dip, newly filed accounts reveal.

The business, based at Broadheath near Altrincham and founded by former England rugby union captains Fran Cotton and Steve Smith, said the performance in the 52 weeks to the end of January was “satisfactory”.

Results – which were for a week less than the previous financial year – saw sales fall to £79.2m from £80.3m, while pre-tax profits fell from £6.5m to £5.4m.

Founders Cotton and Smith are both still involved in the business, which began as a mail order catalogue and now has shops and a website, and in the year bought out long-standing investor Next plc’s 33% stake for £15m.

In the directors’ report Smith states: “The Cotton Traders brand is well-established and the group remains committed to maximising the brand’s profitability. The group traded satisfactorily in the 52 weeks under review.”

During the year Cotton Traders opened 13 stores and  closed 14, leaving it with 133 nationwide.

The accounts show that home shopping accounts for the majority of Cotton Traders’ revenues. Turnover from this division rose from £50.4m to £50.9m, while retail sales dipped from £29.8m in 2014 to £28.2m.

The company was not available to comment further on the results.

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