A fourfold increase in its Asian business and a new handbag line have helped the fashion retailer AllSaints to considerable growth in its sales and earnings figures.
Posting total sales of £252.5m, an increase of 9pc on 2015, the private equity-owned company reported that pre-tax earnings before exceptional items stood at £28.5m, a rise of 18pc on last year.
William Kim, AllSaints’ chief executive, hailed the “strong revenue and earnings growth” and attributed it to the company’s diverse business model, which, unlike many other clothing retailers, is roughly evenly split between men’s and women’s items.
Its new handbag range, The Capital Collection, already constitutes a double-digit share of revenue in some markets, he said.
The company’s international revenue of £108.2m – £97.0m last year – accounted for 43pc of all sales.
Within this, North America was the largest international region with sales up 9.1pc to £83.0m, and Asia the fastest growth region with sales up 332pc to £8.4m.
AllSaints recently launched the brand in Japan, having already done so in Korea and Taiwan, and expects that its non-American international markets will account for a third of its revenue by 2020.
AllSaints said the growth boost came despite an “uncertain backdrop” in some markets where currency weakness impacted the number of tourists spending money.
On sterling’s collapse since the Brexit vote, Mr Kim said the way the retailer was structured helped protect it from currency fluctuations.
As an example, he said US sales were used to do Asian business in US dollars, while sales in euro were used to pay its Portuguese partners in Porto, creating a “natural hedge”.
He also hinted that the retailer was likely to steer away from any hefty UK price hikes following the plunge in the value of the pound.
He said when the Russian rouble halved last year there was a “tremendous mark-up in pricing” from the wider industry, while AllSaints “sat and assessed and didn’t adjust pricing” except for two “minor” changes.