Reiss to ramp up expansion overseas after doubling full-year profits
Family-owned fashion retailer Reiss has said it plans to ramp up expansion overseas next year by adding 40 new stores, after it revealed record sales and profits.
The upmarket high street brand, a favourite with royals and celebrities including the Duchess of Cambridge and Olivia Palermo, said strong growth through its website and existing stores help drive a 10 per cent jump in sales to £128m in the year to 31 January.
As a result, UK earnings before interest, tax, depreciation and amortisation (EBITDA) doubled from to £20m from £10.3m last time. However international losses widened by £800,000 to £1.9m, taking overall group EBITDA to £18.1m.
The son of a tailor in London's Bishopsgate market, David Reiss founded the chain in 1971 as a menswear retailer before expanding into womenswear in 2000.
It has since expanded to 130 outlets in 12 countries worldwide, and has plans to open a further 40 international stores and concessions this year and next. These include its first two stores in Australia, in Melbourne, and a launch online with the David Jones department store group.
The retailer is also following in the footsteps of other British fashion chains such as Topshop, Primark, Fat Face and Ted Baker by expanding in the US, with two flagship stores set to open in New York on Madison Avenue and at the World Trade Centre, and a further three in department store chain Bloomingdales next year.
“This year was the second year of the three-year strategic plan to increase profitability by driving organic growth through the existing store network and Reiss.com, with a streamlined and more effective management team,” the company said.
“The benefit of this strategy continued in the current year, with a significant increase in like for like sales,” it added in a statement.
In July, Reiss was reported to have hired bankers at Morgan Stanley to explore options for the business, including the sale of a minority stake. A spokesperson for the company confirmed that the review was still ongoing.