Unbound Group reports ‘encouraging’ H1 despite £0.3m lose

Hotter Shoes owner, Unbound Group, has reported an EBIT loss of £0.3m for the first half of 2022 after taking into account the costs accumulated by the launch of its new multi-brand platform.

The group saw revenue growth of 10.4% to £27.6m compared with £25m for the same period the year before, highlighting the “benefits of multi-channel sales model despite challenging market conditions”.

It added Hotter Shoes has seen a “notably strong performance” in retail, all channels saw year on year growth of +71.6%, adjusting for Covid-19 related closures in the year prior of +17%

The group has cited its “UK manufacturing facility and strengthened supply chain” which enabled the group to “respond to changing consumer behaviour in-season, which has and will continue to benefit our performance in an unpredictable environment”. 

Ian Watson, chief executive officer of Unbound Group plc, said: “Unbound Group has delivered an encouraging first half performance that builds on the momentum of 2021, despite the increased challenges of high inflation and a volatile and unpredictable consumer environment.  

“The combination of further growth in sales and gross margins demonstrates the effectiveness of our strategic initiatives and the value that our customers attach to our core Hotter product, giving us confidence despite the market conditions, which have become more challenging in recent weeks.”

He added: “The broader revenue base we have created with the launch of the Unbound platform marks an important strategic shift for the group.  However, we remain mindful of the growing pressures on consumer spend. Consequently, we continue to review and adapt to the changing market conditions, maintaining our specialist focus on our core customer demographic of financially resilient 55+ consumers.”