Hobbs bucks downward trend

British womenswear retailer Hobbs shook off the gloom on the rest of the high street today by revealing profits soared 38% last year.

The company, which was taken private in a £111m (€162m) deal involving its management team last year, said concessions in department stores such as House of Fraser and Selfridges had performed strongly.

It also said it was on track to meet ambitious expansion plans by the end of its new financial year.

Hobbs said pre-tax profits rose to £11.7m (€17m) in the year to January 29 and sales lifted 30% to £67m (€97.8m). The performance was in sharp contrast with other UK retailers, many of whom have been seen weaker consumer spending eat into sales.

Managing director Nick Samuel said 2004 had proved to be a “significant year” for the firm. Sales had been in line with expectations in the first quarter of the new financial year.

Mr Samuel said: “Whilst the retail trading environment continues to be challenging, we remain confident of another year of progress as we execute our plan for growth and further develop exciting opportunities for Hobbs.”

Hobbs, which sells women’s clothing, footwear and accessories, increased its number of outlets by 21 during the year, including 15 concessions. By the end of the year it operated from 66 sites and hopes to have 90 stores by the end of 2005.

It said new concessions had performed ahead of expectations and that it was seeing further demand from department stores to stock its products.

There was also “significant capacity” in the UK for further standalone stores.

Hobbs’ four outlets in Canada were performing ahead of hopes and the firm said it had been approached by potential partners to enter other international markets. A store is expected to open in Kuwait this year.

Directors of Hobbs nearly doubled their stake to 37% when they bought out the business from Barclays Private Capital in November. Private equity group 3i backed the deal.