Monsoon Accessorize returns to profit following strength of turnaround
Monsoon Accessorize has returned to profit after making good progress with its turnaround strategy.
Having entered administration in 2020, the business was subsequently acquired by Adena Brands.
In the 12 months to December 2021, Monsoon and Accessorize sales reached £196 million after both brands put in a strong performance in the run-up to Christmas. Digital sales were particularly healthy, increasing by 43% for the 12 weeks through to December. Online sales now account for approximately half of sales and more than 70% for Monsoon. Meanwhile a strong margin performance and a lower, more flexible cost base help drive EBITDA for the calendar year to £17.4 million.
Adena Brands will soon file its first audited financials since the acquisition. In the of 17 months from April 2020 through August 2021, sales came in at £200 million, with EBITDA at £24.7 million and pre-tax profit at £19.9 million.
The company has attributed the success to five key elements of product and brand renewal, digital transformation, retail portfolio restructuring, international restructuring, and central cost reduction.
Nick Stowe, chief executive of Monsoon Accessorize, said: “This has been a difficult year for everyone. But we have navigated the challenges in retail successfully and have been able to accelerate and go further with our turnaround than we expected. Our focus initially was just on saving Monsoon and Accessorize, two iconic brands; but we have been able to transform how we operate, refreshed our product, become more digital, opened new store formats, and become more agile as a team and business. Now that we have restructured and returned the business to profitability, we’re planning further growth with a solid foundation and renewed confidence.”
Adena is expecting the growth to continue over the next year as the brands focus on digital, new retail locations and international expansion. Both will continue to expand in Europe and the Middle East which will include the opening of multiple stores in travel locations.
Peter Simon, founder and chairman, said: “We took a leap of faith in 2020 to rescue Monsoon and Accessorize at the height of the pandemic. Over the past two years our team has worked tirelessly to save the business, return it to a solid footing and secure the long-term future of the brands. The impact of the pandemic is by no means over, and we face serious challenges as do all other retailers and brands, but I am encouraged by the progress we have made, and I would like to thank Nick and the whole team for their hard work as well as our customers for keeping faith in us.”
