The Original Factory Shop announces stellar performance
THE Original Factory Shop, the Lancashire-based discount department store chain, has seen its full year earnings increase by 50% to £14.2m.
As well as the pre-exceptional EBITDA increase, year-on-year sales also grew – by 7.1% to £208m for the year to the end of March 2015.
The Burnley-based chain said the strong results were a direct result of a significant strengthening of the executive management, more targeted investment into the portfolio, and a continued focus on the product proposition.
In June, the company announced it is to open a host of new stores after sealing a £35m funding deal.
It currently has 206 department shops nationally, offering well-known brands at low prices. It says its expansion will swell its staff numbers from more than 2,800 by a “significant” proportion.
Highlights for the company’s financial year included the opening of 11 stores, its first retail park location, entry into larger towns, the expansion of a smaller store format, a trebling of investment into existing store re-fits and the appointment of six new directors across the business.
An increased focus on fashion, including a more fashion-led marketing approach, saw like-for-like ladies wear sales increase by 10% to record levels. Its best sellers included jeans, jeggings and Sloggis.
Footwear also had a good year, rising 22% like-for-like, with branded trainers as top sellers.
The company signed more than 50 new brand partnerships, primarily across fashion-led departments, including Pretty Polly, Weird Fish and Jeff Banks.
Beauty performed strongly overall with double digit growth in each division – including skin care, fragrance and cosmetics – reflecting a number of new brand partnerships, including Jimmy Choo fragrance.
Performance in the gardening segment also stood out with impressive 47% growth, although it still comprises a small proportion of overall sales. The growth was driven by an aggressive pricing strategy and favourable weather conditions in the spring and early summer, it said.
Homewares were up 15%, with a number of new brand partnerships included celebrity chefs, Jamie Oliver and James Martin, and bedding specialists, Julian Charles and Fogarty.
Tony Page, chief executive of The Original Factory Shop, said: “We’re very pleased with our performance. The Original Factory Shop is an exciting business; we have continued to perform well this year; and this strong set of results lays testament to the hard work of our colleagues throughout the business in growing the company, and the success of the investments and initiatives that we are rolling out.
“2015 has been a year of milestones – our 200th store; entry into larger towns; and our first retail park location, and we look forward with eager anticipation for further progress as we continue to roll out our growth strategy throughout next year.”
