Reiss CEO hails success after 'two years of transformation'

Fashion retailer Reiss announced unaudited full-year results, today (9 March), showing totals sales increased by 21.9% to £227.4 million in the 12 months to 1 February 2020.

The business said EBITDA for the period had increased by 51.6% to £29.3 million, with full-year like-for-like (LFL) sales up by 21.6%. LFL comparatives were better in the first half of the year, although the crucial Christmas period – the seven weeks to 18 January 2020 – resulted in an 18% upturn in sales.

Christos Angelides, CEO of Reiss, said the expansion of the company’s international network – notably in the US, Asia and mainland Europe – and changes to operational structure, content, and product design have helped drive growth. Angelides suggested the results were a culmination of a two-year transformation of the business.

The restructuring of operations continued, last month, when Reiss announced it is implementing tech company OneStock's order management system so it can fulfil digital and in-store orders from any stock location. Phase one of that project is mooted for the second quarter of the financial year, and the work will ultimately enable Reiss to ship online orders from stores, allow shoppers to return unwanted online products to store, and support click & collect.

It builds on historic work by the retailer to implement RFID, supported by tech firm, Detego, and consultancy Retail247.

Commenting on business performance, Angelides said: “Customers have noticed the improvements by purchasing more clothes at full price on a like-for-like basis than ever before.

“This has had a very positive impact on profits which climbed significantly higher than sales. Brand and product improvements need to be supported by strong execution. A step change in the execution of our operations and systems, both online and in the distribution of our clothes, has resulted in Reiss appealing to more customers around the world.”

Reiss also opened 67 additional points of sale during the last financial year – 18 in UK, 17 in Europe, 29 in the US and three in the Asia-Pacific region – bringing the total number of global stores and points of sale to 234.

“Internationally, the US has been a stand out performer where sales and customer feedback have been extremely positive,” explained Angelides.

“Going forward into 2020 we have budgeted on a more conservative basis, but we believe there is significant headroom for the Reiss brand to grow on a scalable and sustainable basis. To date, we have committed to an extra 58 points of sale that will open during 2020.”

Some 14 new points of sale are planned for opening on the West Coast of America via partnerships with department store chains, Nordstrom and Bloomingdales.

“We are also seeing strong growth in new customers online which is supported by an efficient customer acquisition model,” Angelides continued.

“I believe Reiss is now structurally well positioned for long term consistent growth.”

What’s Hot on Essential Retail?