Clothing & Shoes

Hobbs sees FY20 turnover fall to £133m

The group’s adjusted EBITDA for the period also declined, falling £1.7m from £21.9m in FY19 to £20.2m in FY20

Hobbs, the women’s clothing, footwear, and accessories retailer, saw its turnover for the year ended 28 March 2020 fall 1.8% to £133m.

The group’s adjusted EBITDA for the period also declined, falling £1.7m from £21.9m in FY 2019 to £20.2m in FY 2020.

Operating profit and profit after tax at Hobbs decreased to £7.58m and £4.31m respectively as Covid-19 “gradually impacted consumer sentiment and store footfall”.

The fashion retailer opened eight stores and five concessions in the UK during the period, while also closing two concessions.

In turn, the total number of Hobbs outlets throughout the UK sat at 175 at the period end, a year-on-year increase of 11.

Headline gross margin for FY 2020 was 60.3%, a 1.1% fall the same period last year, as the impact of foreign exchange and wholesale sales to the group’s subsidiaries and third party partners grew.

The group said: “At the outset of the pandemic the company moved quickly to build our cash position through selective reductions in our expenditure and through balanced negotiations with our suppliers and landlords.

“Hobbs’ greatest strengths are its loyal customer following, distinct brand identity and strong omnichannel presence, supported by a robust and scalable central platform and a strong and supportive parent company. As a result, we remain confident in our outlook.”

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