Wet weather boosted British outdoor clothing retailer Mountain Warehouse in the last 12 months, with the company announcing a large rise in its latest annual profits as a result of the conditions.
Mountain Warehouse revealed that its profits for the 12 months to the end of February were up to £4.4 million, almost double compared with £2.4 million a year earlier.
The wet weather played a major role in this improvement in the health of the business, as it sold more than a million waterproof jackets during the 12-month period.
Much of the UK experienced lengthy periods of heavy rain over the course of the winter months, resulting in an increasing demand for outdoor clothing. Many parts of the country suffered from extensive flooding as well, with thousands of residents across the south-west of England displaced from their homes due to the rising flood waters.
Sales of waterproof jackets were up by more than a fifth (22 per cent) compared to the figures from a year ago, as Mountain Warehouse reaped rewards as a result of the poor weather in the last year. The firm announced that its overall sales rose 20 per cent to hit £91.7 million for the year, while like-for-like sales – which leave out sales in stores that have been open for under a year – were also up, with an increase of more than 13 per cent.
Some 23 new stores were opened by the company in what will be recorded as a very successful year for the business, with online sales also up as a result of the launch of a revamped website. This improved ecommerce provision resulted in internet sales rising by 130 per cent, providing another strong area of growth for Mountain Warehouse over the course of the fiscal year.
In order to take advantage of the growth achieved in the year to the end of February, Mountain Warehouse stated that it is now planning to open 30 new stores in the next 12 months.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.