Cornwall's fast growing fashion brand Seasalt has seen sales reach £75million this year, a rise on last year despite the Covid-19 pandemic.
Strong online sales have seen the brand, which celebrates its 40th birthday this year, grow turnover to £75.4million, an increase of 15% on the prior year and the 11th successive year of 15%+ sales growth.
It has reported operating profit of £1million and profit before tax of £700,000 – level-year-on year after adjusting for unrealised foreign currency movements.
It has revealed a gross profit margin of 55% and underlying EBITDA of £4.4milion.
Chief Executive Paul Hayes said that a strong online presence, reaching custiomers where and when they want to shop combined with a strong Cornish identity had underlined the success.
The business was ranked 38 in the list of Top 150 biggest firms in Devon and Cornwall in the Western Morning News Annual Business Guide 2020.
He said: "Staying close to our customers, being able to understand their needs and never forgetting our Cornish roots has helped us deliver this strong performance and allowed us to adapt at pace during the pandemic.”
“We had started our digital transformation well before the first lockdown, but the events of the past year have accelerated all our plans. We now make approximately two-thirds of our sales online and while our stores remain a vital and constantly-evolving part of the business, we expect a much higher percentage of sales to be digital from now on.
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“As we begin our 40th anniversary year, we have taken the steps necessary to prepare Seasalt for the challenges ahead and we are well positioned for continued success as the economy recovers.”
The brand, which was also rolling pout a number of store openings across the 海角视频 before the pandemic hit, was , affecting up to 10% of its head office staff in Falmouth.
Like all bricks-and-mortar retailers, the store closures through repeated lockdowns and restrictions has caused severe disruption to trading in Seasalt’s store estate and will continue to do so for at least the early part of 2021, says the report.
Store sales for the year ended 30th January 2021 are expected to be approximately 57% lower than those of the year ended 1st February 2020, the trading update reports.
The reduction has had a significant impact on the profitability of the store estate and discussions are ongoing with landlords, who are mostly being very supportive partners.
Mr Hayes said: "Our stores remain a vital part of the business and we can’t wait for them to reopen. We know customers love to touch and feel our products and spend time with our staff, with many shopping online and in the stores. The experience we offer in our stores is unique and remains challenging to replicate online."
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He said that staying close by communicating with customers has been vital during the pandemic.
He said: "Our communication with customers has been authentic and built on the emotional connection we have with them and their love of Cornwall. Our stories attached to our heritage are key to what we do and it’s that authenticity we believe our customers enjoyed coupled with consistently great product."
Online sales have grown well above expectations, with customers responding to a mixture of brand content, Cornwall-inspired activities and positive messaging. Current expectations for the year ended 30th January 2021 are for online sales to have increased by 72% year on year, reflecting high demand for Seasalt’s relaxed style of clothing as customers adapted to spending more time at home. Overall, across all sales channels, sales are expected to be only 9% down year on year.
Seasalt has embraced online selling, including partnerships with European ecommerce site Zalando and eBay which has reached new customers. Online sales now account for 67% of sales and are expected to remain the dominant channel after stores reopen.
Customers are adapting to working from home with sales of women’s socks, slippers and trousers more than doubling.
The launch of virtual and in-store appointments when allowed have providing customers with a personalised experienced in a safe and comfortable environment.
For the five-week period ended 2nd January 2021, overall sales increased by 17% compared with the same period last year, with a 44% fall in store sales more than compensated for by a 95% rise in online trade. International sales increased by 20% in the same period.
Malcolm Macdonald, Seasalt Chief Finance Officer, said: “I am pleased to say momentum from a strong set of financial results last year carried on into the new financial year and through Christmas.
“By being available to customers where and when they want to shop, Seasalt has been able to continue to trade successfully through a period of enormous uncertainty in the retail sector.”
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