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The Unbound Group has reported a 16% increase in revenues for its subsidiary, Hotter Shoes (Hotter), in the financial year ending 30 January 2022 (FY22), up from £44.5m in FY21 to £51.9m.
Hotter has also announced a partnership with M&S to sell Hotter products on the ‘Brands at M&S’ platform, initially offering 32 products and increasing to 75 available directly via the M&S website. This follows agreements with other retailers including John Lewis, Next and The Very Group to sell Hotter products online.
Meanwhile, Hotter is reportedly expected to generate adjusted EBITDA of approximately £5.5m for FY22, compared to FY21 which saw a loss of £0.9m.
Additionally, pre-tax profits for the year are anticipated to not be below £0.2m, which is a year-on-year improvement of over £6m as FY21 saw a loss of £6.6m.
Q4 FY22 also delivered a year-on-year increase in revenues of 10%, achieving a gross margin above 61%. The Unbound Group said this was accomplished despite headwinds from Covid and supply chain challenges, though the latter “stabilised somewhat” during the quarter.
The group announced Hotter achieved double digit revenue growth in both its digital and traditional retail channels. Hotter also achieved 16% increases year-on-year in average selling prices in FY22, and an improved gross margin to above 63%, up 9% from FY21.
Ian Watson, chief executive officer, said: “I am delighted that the progress we have made in resetting Hotter continues to be translated into improved financial performance and momentum. The partnership with M&S is further testimony to Hotter’s attractiveness to other best in class retail platforms.
“The development of the Unbound Group platform is also gathering pace, we have strengthened the management team and we are currently engaged in positive discussions with a number of potential partners.”
