Hotter reports strong Black Friday trading
Footwear retailer Hotter has said it experienced strong trading across the Black Friday period despite the impact of sector-wide supply chain issues.
In a trading update ahead of the imminent AIM listing of its new parent company, Hotter said sales were up 10% year-on-year in the period.
The company has also announced that it generated EBITDA of £2.5 million from revenue of £25 million in the half year ending July 2021.
Hotter’s chief executive Ian Watson attributed the performance to high product demand, direct-to-consumer driven revenue growth, gross margin expansion and a rapidly accelerating customer database of over one million.
The company said it has navigated the current supply chain disruptions by making the most of its Lancashire-based manufacturing facility and its ability to allow backorder reserves for future fulfilment. It has also benefited from the reopening of its supplier factories in Asia following Covid-19 lockdowns.
Hotter now regards its online business as its core channel due to ecommerce accounting for 65% of all sales in 2021.
Growth has also been helped by a £2 million investment in Hotter’s direct-to-consumer digitalisation including the launch of an augmented reality smartphone app, the company’s footprint scanner, and its move to experiential-led retail environments.
The trading update comes as Hotter prepares itself for parent company Electra’s transition from its main market listing to AIM in early 2022 as Unbound Group, subject to shareholder approval.
Watson, who will also be appointed chief executive of Unbound as it comes to market, said: “We are pleased with the steady progress of Electra’s transition to Unbound and our own momentum as we focus on developing our curated, digital platform and building a network of targeted brand partners.
“As we prepare for our launch early next year, we are confident that we will hit the ground running, given Unbound will be underpinned initially by the strength of the Hotter brand, which continues to trade well despite current headwinds, with trading over the Black Friday period up 10% from last year.”
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