Austin Reed back on track

British apparel chain Austin Reed has posted gains in turnover and profits for the first half of the year. Sales were up 6.7 percent to £55.9 million, while pre-tax profits for the six months ended 12 August rose to £500,000, up from losses of £1.1 million the year before. “By improving our product, stores and service we have broadened our appeal to customers and increased our sales and margins,” chief executive Nick Hollingworth said in a statement. He attributed the elimination of debt to good cash management and the sale and leaseback of the group's Thirsk site.

Sales of the Austin Reed brand increased 7.2 percent to £30.5 million, with like-for-like sales up 3.3 percent. “We definitely have a better product to thank for the improved results,” says Alan Charlton, the group's financial director. “We now have people at the helm of both the Austin Reed and CC brands that have more talent and flare.” The CC brand, formerly known as Country Casuals, saw sales in the first half rise 4.4 percent to £24.1 million. Like-for-like sales jumped 10.5 percent. The rebranding of the line has been completed and it now focuses on women who want smart outfits for both day-to-day wear and for formal occasions. This offering is hitting the right notes on the high street, where Charlton has noticed a trend change taking place. “During the past five or six years, fashion has dictated an informal, almost grunge-like style,” he says. “We are now seeing that consumers are favouring a more formal, tailored look, which is exactly what Austin Reed and CC offer. I don't expect this to be a short-lived trend.” Not only have consumers' tastes changed favourably for the group, London 's recovery from the aftermath of 9/11 and the bombings last year has also proved positive. Sales in the Austin Reed flagship store on Regent Street – which do not include like-for-like sales - leapt 13.3 percent in the first half. “ London is thriving again. Add to that our own brand recovery and the results speak for themselves,” says Charlton. He adds that the brand is currently one of the top performers in department stores.

Austin Reed's overseas licensing business is considerable, accounting for £124 million in sales. The company recently signed new licenses in Russia and Japan . “It is a relatively low risk business and generates £1.5 to £2 million profit for the group,” Charlton explains. He also said that, in addition to the group's refurbishment of current stores, it is looking for new locations.

For the first five weeks of the second half ended 16 September, group like-for-like sales rose 11.6 percent. The Austin Reed brand saw total sales rise 15.1 percent, with like-for-like sales up 5.9 percent. Meanwhile CC sales gained 13.4 percent, with like-for-like sales up 16.2 percent. Hollingworth says he remains “confident in our recovery strategy.”

www.austinreed.co.uk
27 September 2006

Austin Reed rejects bid

British fashion retailer Austin Reed has rejected a bid from Guy Naggar and Peter Klimt late on Friday. The property investors made the 131p a share bid through Dawnay Day Corporate Finance, which already has a 29.9 percent stake in Austin Reed. The bid values the company at £41 million. Austin Reed rejected the bid as “hostile”, stating that the approach undervalued the company. Naggar, a former deputy chairman of Charterhouse Bank, began building his stake in the company in February 2004. Klimt is a board member of Dawnay Day, with whom he formed a joint venture investment company in 1989. According to the FT, they are thought to be eager to acquire control of the retailer's flagship store on Regent Street , which was recently valued at more than £23 million. Austin Reed is being advised by Close Brothers. The company refused to comment.

www.austinreed.co.uk
12 September 2006

Austin Reed sales improve, CC sales down

British clothier Austin Reed has recorded a sales boost in its namesake chain. For the 15 week period ended 14 January, same-store sales increased 2.7 percent. Total sales for the period were up 6.3 percent. The company said performance had improved in men's formal and casual wear, accessories and women's wear. “(…) our strategy of focusing on full-price sales has delivered a further improvement in margins,” it added. Meanwhile same-store sales at its CC business dropped 10.5 percent, while total sales plummeted 17.8 percent. However, the company margins were up from last year. “The full effect of these changes will not be seen until later in 2006,” said Austin Reed. “We are, however encouraged by the customer reaction to the early deliveries of Spring 2006 products.”

www.austinreed.co.uk
19 January 2006

Austin Reed posts losses

Austin Reed, the British high street fashion retailer, has reported a loss of £1.1 million for the first half ended 13 August. The amount was, however, a small improvement on the loss of £2.8 million in the same period last year.

The company admitted that its new CC division – previously known as Country Casuals – needed some improvement after it showed a 15 percent drop in same-store sales.

www.austinreed.co.uk
10 October 2005

Retail Slump Eases At Austin Reed

Austin Reed has seen an improvement in the rate of sales decline over recent weeks, although it continues to find the going tough. In the 18 weeks to June 4, the upmarket fashion retail group has seen total retail sales decline by 5 per cent, with a 3 per like-for-like fall.That compares to a 7 per cent total decline and 6 per cent like-for-like fall reported for the first 10 weeks of the financial year.

Across the 18 weeks, total sales in the core Austin Reed brand increased by 3 per cent, with like-for-like sales up 1 per cent. The company said its Austin Reed casualwear and womenswear ranges have performed well. By contrast, the Country Casuals womenswear brand has seen total sales fall by 10 per cent, with like-for-like sales down 6 per cent.

The company said it has focused on full price sales at Country Casuals, with margins showing significant growth. The range is being rebranded and relaunched as CC, and Austin Reed has has said it expects to see improvements in the second half of the year.

Chief executive Nick Hollingsworth told shareholders: "We remain confident that the changes implemented during 2004 and those planned for 2005 will improve financial performance. "We recognise however, that the difficult trading environment is likely to continue in the remainder of 2005."

www.austinreed.co.uk
8 June 2005

Austin Reed still struggling

British high street retailer Austin Reed is still experiencing difficulty in boosting its County Casuals womenswear unit, although sales at it core namesake chain were showing promising growth.

The group reported a drop in full-year same-store sales at Country Casuals of 8 per cent to GBP51.4 million. Meanwhile, Austin Reed sales increased 7 per cent, while its Regent Street store experienced an 18 per cent growth. Total annual sales remained fixed at GBP 111.5 million.

Pre-tax losses for the group totalled GBP 1.9 million compared with GBP 1.4 million the year before. The company did say, however, that action undertaken throughout the year had sent the business back into profitability in the second half of the year.

Same-store sales for the first ten weeks of the new financial year fell 6 per cent. The company has been taking steps to modernise Country Casuals division in an effort to attract the 40+ market. "The full effect of repositioning this brand won't be seen until the second half of the financial year," said chief executive Nick Hollingworth.

www.austinreed.co.uk
18 April 2005

Austin Reed To Focus On Country Casuals Range

Austin Reed has raised its forecasts for the full year despite a continued sales decline in its Country Casuals business, as measures to reposition the womenswear brand improve. In the 22 weeks to January 15, group retail sales increased by 0.3 per cent, with like-for-like sales up 0.2 per cent.

The core Austin Reed brand saw sales up 8.9 per cent and 9.7 per cent like-for-like, while Country Casuals sales decreased by 5.6 per cent in total and 5.9 per cent like-for-like basis. The group said Country Casuals margins increased by 6 per cent, reflecting its strategy to reposition the brand and reduce promotional activity. A later start to the winter increased margins and "more than offset the effect of the reduced level of sales".

Austin Reed said: "As a result of the improved performance from both brands, the Board now expects the group to exceed market forecasts for the year as a whole."

www.austinreed.co.uk
19 January 2005

Austin Reed suffers losses

The UK clothing firm reported a first-half loss before taxes of GBP 2.7 million. Furthermore, not taking into account the closing of shops and the opening of new sales points, sales fell 0.5% in the first weeks of the second-half. Shares fell 2.6% during trading this morning, valuing the company at GBP 42 million.

According to Nick Hollingworth, Chief Executive of Austin Reed, the sluggish sales are due to declining interest from women over 40. In an interview with news service Reuters, he admitted that women over 40 used to start dressing like their mothers. These days they are more likely to start dressing like their daughters. As a result, the firm's Casual Country brand is suffering. The brand's sales fell 5.5% in the first seven weeks of the second half.

www.austinreed.co.uk
6 October 2004

Austin Reed To Sell Country Casuals Brand

Austin Reed is reportedly considering selling its Country Casuals womenswear brand. The range, which is underperforming, has been under review by Group Chairman John Robins as he told shareholders of the possibility of selling the business.

Menswear, which makes up about 80 per cent of Austin Reed brand sales, has performed encouragingly since the start of the new financial year. Austin Reed womenswear has underpefomed while "Country Casuals' main range remained under pressure as market conditions in the quality classics sector continue to be challenging". The Country Casuals Petites sub-brand saw stronger sales.

Total retail sales in the 16 weeks to May 22 were up 2 per cent, while like-for-likes, excluding the Regent Street flagship store which was undergoing a revamp last year, fell by 4 per cent. Overall sales at the Regent Street store were up 28 per cent year-on-year.

There has been speculation that a possible buyer for Country Casuals could be a consortium of brothers Maurice and Michael Bennett, who sold the Oasis fashion chain to an MBO three years ago, in partnership with fellow retailer Mark Bunce, a former chairman of Country Casuals.

www.austinreed.co.uk
27 May 2004

New Chief Exec To Revitalise Austin Reed

Retailer Austin Reed is aiming to improve sales with the recent appointment of Nick Hollingworth as its new chief executive. Hollingworth, who comes from the Aracadia group which also manages Top Shop and Dorothy Perkins, will be responsible for revitalising profits, which where were down from GBP116.8m to GBP111.9m.

Total retail sales for Austin Reed fell 4.6 per cent, declining by 9.7 per cent on a like-for-like basis. Menswear, which is the concentration of sales for the company, saw a slight increase with 3 per cent in the second half. This echos the increase in suit sales, which has been a rising trend for other retailers across the country. Womenswear, however, fell 6 per cent throughout the year.

Hollingworth' extensive retail experience in managing major menswear and womenswear high street brands will be of great value to the group. Improvements in both product areas as well as new store refurbishments should lead the company back into healthy sales patterns. Austin Reed currently operates 49 stores and 41 concessions in the UK.

Total retail sales in the first nine weeks of the new year show an increase of 4 per cent. On a like-for-like basis, including Regent Street, sales are level. Excluding Regent Street, like-for-likes are down 3 per cent.

www.austinreed.co.uk
8 April 2004

Austin Reed To Replace CEO

Austin Reed is looking for a new chief executive after Roger Jennings stepped down in the wake of continuing poor sales at the clothing retailer.

Jennings is leaving 'to pursue other interests', with group executive director David Lowbridge, standing in until a suitable successor is appointed,
Austin Reed saw retail sales fall by 5.2 per cent in the 22 weeks to January 10, with Like-for-likes sales were down 11.3 per cent. The company said trading had shown 'marginal improvement' on the sales performance for the first 15 weeks of the same period, reported in November.

16 January 2004
www.austinreed.co.uk

Austin Reed to Relaunch London Flagship

Austin Reed is launching an advertising campaign and a new brand identity to coincide with the unveiling of its refurbished London flagship.

The 32,250sq ft store in London's Regent Street has had a GBP12m makeover that will be completed by the end of August. The advertising campaign, which breaks at the end of this month, will run on London buses, in underground stations, as well as in the Evening Standard and The Times newspapers.

Austin Reed Group chief executive Roger Jennings said: "We have already moved forward in terms of product development and the flagship store is a key element of the continued reposition of the Austin Reed brand." The store will have a sportswear area in the basement featuring a golf putting green, a bar and restaurant area, and a revamped grooming salon.

18 August 2003
www.austinreed.co.uk

Strong numbers at Austin Reed

British fashion company Austin Reed Group said its performance for the first half of 2002 was boosted by strong growth at the Country Casuals Petite und Austin Reed Casual wear divisions.

Total sales for the six months to 10 August 2002 increased by three per cent GBP 60.3 million, while pre-tax profit rose by eight per cent to GBP 2.7m. Country Casuals is the company's brand for women over 40. This division showed a growth of seven per cent. The Petite Collection accounted for 18% of the unit's total sales.

Austin Reed that is based in London opened two Country Casuals stores and 10 concessions in this period, bringing the total number of selling locations up to 203. Trading at the 83 Austin Men's Casual stores was better than for the formalwear business, with sales rising five per cent. Licensing revenues amounted to GBP 1million.

www.austinreed.co.uk
09-23-02

Austin Reed invests in London flagship store

One of our leading men's and women's fashion brands, Austin Reed, plans to invest GBP 12.3m in the restyling of its flagship store in Regent Street. The London-based company wil start the restyling in summer 2002 and plans to complete the operation by autumn 2003. The store will remain open throughout the process. The increased store space could result in a turnover increase of 40 percent.

www.austinreed.co.uk