Reiss caps three-year turnaround with record profitsComments Off on Reiss caps three-year turnaround with record profits
Luxury fashion brand Reiss has emerged from a three-year turnaround with record profits, accounts posted on Friday revealed.
The company, which counts the Duchess of Cambridge Kate Middleton as a fan, said profits after tax jumped 13% to £12.5 million in the year to January 2016 – the firm’s best ever performance.
Sales rose almost 12% to £145 million.
Shareholders, including founder David Reiss, who built the business after taking over a Bishopsgate menswear store owned by his father, received a £5.5 million dividend for the year.
That comes on top of the £100 million-plus windfall David Reiss landed in April on selling a majority stake to private equity firm Warburg Pincus.
The deal, aimed at stepping up expansion in North America, Asia and Australia, valued Reiss at £230 million.
Reiss said it would open 26 new international stores and concessions in 2016, along with 6 additional UK branches.
It decided however to leave Russia due to the volatility of the market. It set aside £1.45 to cover the costs of shutting its two stores there.
The performance represents a revival of fortunes compared to three years ago, when it fell into the red after investing heavily in its online operations and international roll-out.
It subsequently restructured, streamlining its management. Reiss said that process was now complete.
“The objectives of the three year strategic plan put in place in 2013 have been achieved with significantly improved profitability and the foundations for Reiss to develop internationally to extend its range of products on offer in the core UK portfolio and online,” it said.
“A new three year plan is being put in place to allow Reiss to realise its full potential as a global brand.”
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