Focus on wholesale and return of Theo shows immediate results.
Theo Fennell performed well over the key Christmas sales period and achieved like-for-like retail sales growth of 25% for the period December 1 to December 24.
Theo Fennell’s focus on expanding its wholesale business has shown immediate results, with sales this year more than double the prior year. The company said that it now has a strong wholesale base from which to expand with new partners in Moscow and other new openings expected elsewhere in the early part of 2010.
The brand’s strong performance in the second half of the current financial year has resulted in a 9% like-for-like sales rise against the prior year for the first nine months to 31 December 2009.
Theo Fennell said that sales in January to date have been impacted by the extreme weather conditions with little customer traffic in stores and concessions. Whilst the impact of this on the overall results for the year ending 31 March 2010 is not thought to be significant, Theo Fennell now expects to achieve a marginal loss for the year. This will be a significantly improved performance for the year ending 31 March 2010 when compared to a loss of more than £3m made in the prior year.
The company has repaid and cancelled the total outstanding secured convertible loan notes of £300,000 at par. The loan notes were issued pursuant to an instrument dated 3 September 2003 paying interest at 7% per annum and convertible into shares at the rate of 30 pence per ordinary 5 pence share equivalent to 1 million ordinary shares.
Theo Fennell chairman Rupert Hambro said: “We are pleased with the business turnaround achieved so far and the positive reception to Theo’s new designs by both existing and new customers. This resulted in a strong sales performance over the key Christmas trading period.
“Although we continue to be conscious of the potential impact of the fragile economic environment on the Company’s performance, we are confident of a significantly improved result for this year compared to last year. We believe we now have the firm foundations for the future recovery of the business.’’