Mountain Warehouse FY'13 pretax profits zoom 75%

FINANCIAL HIGHLIGHTS

-Pre-tax profits UP 75% to £7,578,100 (2012: £4,343,494)
-Sales UP 17% to £75,009,933 (2012: £63,694,584)
-Like-for-like sales UP 10.1%

OPERATIONAL HIGHLIGHTS

-15 new store openings taking the total to 154 at end of period
-Online sales more than doubled
-Over 150 new jobs taking workforce to 1,200
-More than 90% of shoppers rate MW either excellent or good for BOTH prices and customer service

Mountain Warehouse has bucked the high street trend by reporting pre-tax profits up 75% to over £7.5million.

The company also announced plans to open at least 20 new stores in the UK in the next 12 months, creating over 150 new jobs.

Mountain Warehouse is the UK’s leading outdoor retailer, specialising in outdoor clothing and equipment for all the family.  The company now has 160 stores selling more than eight million items a year, with the 160th opening in Richmond, North Yorkshire last week.

The surge in profits was fuelled by an over 10% leap in like-for-like sales including a strong performance from its internet business which more than doubled takings.

Mark Neale, Mountain Warehouse’s founder and chief executive, said the company was also boosted by last year’s dismal weather and the extended winter.

He said: “The weather definitely helped. Last April was the wettest for 100 years and the summer was a washout, but every cloud has a silver lining – at least for our business.”

The profits increase was despite a flood of stock being sold at knockdown prices at the start of 2012, following the collapse of the Blacks/Millets business.

Mr Neale, who started the business 15 years ago with a single store in Swindon, said the success of Mountain Warehouse suggested those predicting the demise of the high street were too gloomy.

Mountain Warehouse tends to favour market towns and locations popular with walkers and tourists.

“Despite all the talk about the death of the high street, in our experience there is still plenty of life in many towns up and down the country. Consumers are looking for the right products that offer great value – both on the high street or online.  We have well located stores, fantastic customer service and a great website too.”

OUTLOOK:

Trading in the new financial year has got off to an excellent start, with like-for-like sales well over 10% with online business continuing to expand rapidly.  The company has already added nine new stores so far this year with others opening this summer in coastal towns Whitby, Whitstable amongst others.  The return of the Glastonbury Festival this year also had a positive impact with tent sales in the weeks running up to the festival more than double the level achieved at the same time last year.

Mountain Warehouse has 15 years’ experience developing the very best outdoor gear for all the family (and their dogs). It has 160 stores and employs more than 1,200 people. Mountain Warehouse sells more than eight million items a year from jackets and fleeces to rucksacks and sleeping bags. It also sells items for running and cycling.

Mountain Warehouse