Anya Hindmarch doubles 2010 pre-tax profits
UK-based luxury leathergoods brand Anya Hindmarch has more than doubled pre-tax profits in 2010, according to accounts filed with Companies House on 24 October, 2011.
The privately owned designer reported pre-tax profits of £830,000 on revenues up 12% to £20 million in the year to December 31, 2010. Despite the strong results, incoming chief executive James McArthur has put plans for 10 new international stores on hold until 2012, choosing to focus on making the label’s 55 existing stores more profitable.
“We can expand considerably by increasing the sales densities in our existing stores, and we are looking to expand our wholesale distribution internationally,” he said.
Stores in Tokyo and Kuala Lumpur opened in 2011, but the priority will be expanding into mainland China and signing a wholesale distribution agreement with a US department store.
“The business is on a very sound platform for expansion, and our British-ness and quirkiness is absolutely fundamental to that,” said Mr McArthur. Formerly chief executive of Balenciaga, Mr McArthur joined the business in May, taking over from founder Anya Hindmarch, who is now chairman and creative director.
More than half of the company’s sales revenues are generated in the UK, where Mr McArthur confirmed that 2011 sales are about 10% ahead of the previous year on a like-for-like basis. “We are about to come into the most important part of our trading year, but I expect to see low double-digit sales growth for the full year,” he said.
“This is part of a much broader luxury trend,” said Mr McArthur, who was given a leather business card holder embossed with the words “The reins are yours” by Ms Hindmarch when he took over.
