Jeweller plays down VAT increase as jeweller reports sales up 11%.
Theo Fennell chairman Rupert Hambro said he was unworried about the impact of the impending VAT rise in January as he delivered a strong set of results for the jeweller.
Sales at the luxury jeweller in the first six months of the financial year were 11 percent ahead of the previous first half.
Hambro said that he was not anxious about the rise because the majority of Theo Fennell’s customer base is outside of the UK. He claimed that the rise, which is due to take place on January 4, would not have “a material impact on the group”.
Hambro said the brand would continue to cultivate the international market. He added: “We continue to explore opportunities with a number of new partners in key international markets including both the Middle and Far East and expect to secure additional distribution outlets this financial year.”
In the UK, Theo Fennell is readying itself for Christmas. The brand has been working on a number of new collections for the season including its first silver diffusion line which will be available at its retail stores from next month.
The brand’s store in the City and its flagship store in Kensington have both been upgraded and the company is currently focusing on an upgrade on its e-commerce store, which should be ready by November.
Despite the bullish update, Hambro remains cautious for the outlook for the key festive trading period. He said: “Although we are encouraged by the continued growth in sales we remain cautious as we enter the key Christmas period given the ongoing challenging economic environment.”