Monsoon steps up overseas expansion plans

Fashion chain Monsoon says it is laying the foundations of a "truly international business" as its steps up plans to expand overseas.

Monsoon, which announced in October it had sealed an agreement to open in 20 US stores, says it expects further deals in other countries.

The move comes as the company announces that pre-tax profits rose by 8% to £13.8m in the 26 weeks to November 25.

Turnover rose by 14% to £85.4m, while like-for-like sales - excluding income from new stores - picked up 8% from its portfolio.

However, the like-for-like figure for the four weeks was only ahead 3% as chairman Peter Simon warned that Monsoon was in for a challenging few months.

He said: "I am pleased that profits continue to rise and I am encouraged by the results of our expanding international operations. But we need to continue the like-for-like sales growth achieved in the first half in order for our profit growth to be maintained".

Monsoon's overseas strategy has recently focused on forming partnerships with businesses in countries including Greece, Malta, Iceland and Qatar. It currently has 25 Monsoon outlets outside the UK, with a further 14 Accessorize stores.

The deal with US chain Charming Shoppes in October developed the Monsoon and Accessorize brands there, with Monsoon investing £1.4m in the joint venture and receiving a 20% stake in the US company.

Monsoon says it is making good progress towards selecting partners in other countries, stating: "We expect to conclude further agreements before the end of this financial year. We shall continue to invest in building up our infrastructure to support our international partners and to develop the business overseas".