Sales surge at The Hut as brand focus delivers
ONLINE fashion, health and beauty and entertainment retailer The Hut Group has reported growth of 71% for the first three months of 2012.
The Northwich-based company said it has closed its Channel Islands-operation, exited its less profitable ‘white label’ entertainment business and refocused on its own brands such as MyProtein.com – which it acquired last year – LookFantastic.com and zavvi.
The investment in new brands and categories means The Hut is much less a seasonal business. In 2009 entertainment revenues were 100% – meaning the group was very focused on Q4 – but this year entertainment will account for 35% of the total.
Annual sales are expected to rise from around £140m in 2011 to £175m this year.
The group, which is still looking to float on the Stock Market – but not until market conditions are less volatile, has extended its banking facilities with lender Barclays for three years.
It has increased its warehousing from 110,000 sq ft to 315,000 sq ft with a new site at Stretton near Warrington – where it employs nearly 200 people.
Commenting on the group’s progress chairman Angus Monro said: “The business consistently delivers market-leading revenue and earnings growth period after period.
“Matt Moulding and John Gallemore have built a team which has developed the sector’s leading proprietary technology platform, grown UK and international customers to in excess of six million and which is delivering growth across each of its categories.
“The group’s business model is very well positioned as it continues to reduce the mix of entertainment by growing higher margin category sales, particularly against the backdrop of a challenging High Street environment and the continuing sales channel shift online.”
The Hut said acquisition in May 2011, Myprotein.com has increased revenue growth from 45% to 87% in Q1 2012.
