Aurora jumps back into black
THE clothing retailer behind Karen Millen, Coast, Oasis and Warehouse has clawed its way back from its annus horribilis last year to beat market expectations.
Aurora Fashions, formed in March last year after the administration of the brands’ former owner Mosaic Fashions, said earnings hit £38.6m last year on sales of £661m.
Aurora, which is still controlled by Icelandic bank Kaupthing, also slashed its net debt to £109m, which was “significantly ahead of the bank plan”.
Aurora’s executive chairman Derek Lovelock said he was “delighted Aurora has emerged in such great shape.” He added: “Our business has been transformed.”
The firm has aggressively expanded, opening 150 stores abroad with Germany and Spain seeing the biggest push. International sales growing by ten per cent, representing 34 per cent of the group’s global retail sales. It now trades from 1,471 stores in 45 countries.
It also saw online sales grow at a rapid pace, expanding 23 per cent year-on-year. Online sales now represent ten per cent of the group’s UK revenue.
Mike Shearwood, chief executive, said: “I am delighted that the business has emerged in such great shape, we have built strong foundations for future growth and exceeded the targets set when Aurora was founded.
“We have taken huge steps to reduce debt and make us more efficient, all of which are now benefiting the business and will continue to do so in the future. Our continued expansion in international markets and e-commerce has helped to widen our customer base and increase the awareness of our brands.”