The Courier & Advertiser (Angus and Dundee)
Outdoor chain to add 40 stores in expansion
400 new jobs on horizon as record profits spur Mountain Warehouse
Outdoor retailer Mountain Warehouse has seen profits climb to record levels and is to create 400 new jobs as it continues to expand its store estate.
Pre-tax profits jumped by 22% to £19.8 million in the year ending February 2017, while sales surged 30.8% to £184.8m.
Like-for-like sales also climbed by 16.5% over the period, but growth eased from the 19.3% seen in 2016.
Mountain Warehouse plans to open 40 more stores this year creating hundreds of jobs.
No details of the new sites have been revealed but The Courier understands there will be further investment in Scotland where the group already has a number of outlets includes shops in Dundee, Perth, Dunfermline and Livingston.
Chief executive Mark Neale said he was “not overly concerned” about the prospect of shoppers reining in their spending in the face of rising inflation.
Unlike some retailers on the high street, Mr Neale said the firm had managed to shield customers from Brexit-induced price rises thanks to currency hedging and favourable prices from suppliers in China.
He added: “In previous downturns we have benefited potentially from people being on bit more of a budget and shopping with us when they would have shopped at more expensive brands.
“Right now, we are in discussion on two Brantano stores because they went bust a few weeks ago.
“Everyone says ‘doom and gloom Brantano are going bust’, but two new Mountain Warehouse stores are going to open as a result and will create new jobs.”
International sales doubled for the year, while online sales pushed 50.6% higher.
Mr Neale said he expected the international business to grow to at least the size of the UK operation in time and said innovation would remain at the heart of the group going forward.
However, plans to take the business public are now “very much in the long grass” after the group rolled back on a proposed stock market flotation.
The retailer’s sister brand, Zakti, which sells sports and gym clothing, will also open two more stores this year.
business@thecourier.co.uk