Upmarket fashion chain Hobbs back in black with £6.9m profit after ramping up the number of concessions it runs
Style icon: Hobbs counts the Duchess of Cambridge as a fan
The upmarket fashion chain Hobbs, which counts the Duchess of Cambridge as a fan, has returned to the black.
The brand, which was founded in Hampstead, London, in 1981, turned a £4.7million loss into a £6.9million profit in the year to March 2019, according to its latest accounts. Hobbs has 77 stores in the UK and abroad, and operates from a range of department stores such as Debenhams and John Lewis.
In the past year it has ramped up the number of concessions it runs, opening 23 in the UK and ten abroad. It now has 172 concessions. The return to profit came as it cut costs by £3.7million and boosted sales by 2 per cent, taking turnover to a total of £135.4million for the year.
It said it has seen growth both online and in its bricks-and-mortar stores.
‘Against a challenging retail environment in the UK, the company delivered a strong performance, achieving revenue growth and cost reduction,’ it said.
In 2018, when it made the loss, Hobbs also carried £5.8million in corporate costs associated with its acquisition by the Foschini Group in 2017.
The retail conglomerate, which also own Whistles and Phase Eight, has an asset manager owned by the South African state as its largest shareholder.
Hobbs yesterday attributed its success to being ‘a well-established brand, with a loyal customer following’.