Stella McCartney, a prominent designer based in the UK, has reported a notable increase in sales and profits within its domestic market for the fiscal and calendar year of 2017. While the figures do indicate growth, there has been a slowdown in comparison to the previous year.
Specifically, in 2017, Stella McCartney’s sales in the UK rose by 2.1% to reach £42.5 million, accompanied by a 1.5% increase in net profits, amounting to £7.1 million. However, pre-tax profit saw a decrease from £9.51 million to £9.08 million, with operating profit also falling by 4% to £9.1 million. This decline follows a significant 43% rise in the prior year.
The deceleration in growth during 2017 can be linked to the aftermath of Brexit, which had artificially boosted sales by up to 31% in the year before. The post-EU referendum scenario saw a surge in luxury tourist visits to London, resulting in a temporary revenue spike for various UK-based brands.
It is worth mentioning that these figures pertain only to Stella McCartney’s UK business and licensing operation, as the overall company’s accounts are consolidated under its parent company, Kering. The forthcoming transition in ownership from Kering to McCartney is expected to provide more detailed insights into the brand’s performance.
Looking ahead, Stella McCartney’s focus revolves around refining its high-end product range, fortifying its luxury image, and augmenting its brick-and-mortar store and concessions portfolio. The brand remains committed to expanding its physical presence through new owned stores and concessions, with a particular spotlight on penetrating the Asian market.
During a recent interview, CEO Frederick Lukoff underscored the significance of Asia in the brand’s strategy, emphasizing the success of Stella McCartney’s menswear collection in Japan. Positive feedback on the label’s kidswear business in Asia has paved the way for plans to venture into western markets. Initial steps include launching more kids’ stores in China before extending into additional territories.
In conclusion, Stella McCartney stands firm in its aspirations for growth and expansion, with a strategic orientation towards international markets and the elevation of its premium brand image. Through continuous evolution and adaptability to market dynamics, the brand holds a promising outlook for sustained success in the global fashion landscape.
For more information on Stella McCartney and her latest collections, visit the official website here.
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