Hobbs to test premium market

UK high street multiple Hobbs is to test an upmarket range of womens ready-to-wear for next season. Launching in store for autumn, the premium collection will be more aspirational and limited in quantity which will be reflected in its pricetage, which could see product be 50% more expensive.

Focusing on premium detailing and exclusive fabrics, Hobbs hope to roll out the sub-range eventually to about 15 stores. The womenswear retailer, which is celebrating its 25th anniversary this year, will also boost its accessories offer for autumn by introducing jewellery.

“I the past few years, accessories have mumped from 3% of sales to 8% of a much bigger turnover. We’re experimenting with separate displays to see how we can merchandise it better,” said the group’s managing director Nick Samuel.

Hobbs plans to add 11 stores and oncesstion this year to its portfolio of 93 outlets. It will also launch a transactional web site by the end of the year, selling a limited amount of the collection, such as knitwear.

Turnover rose 11% to £74.7 million from £67 for the year to Janary 28. Store opening costs and a tough economic environment in spring 05 hit pre-tax profits, which fell to £11.4m, compared with £11.7m the previous year. Samuel expects sales this year to hit £93m.

15 July 2006

Hobbs to introduce new lines

Fashion chain Hobbs has announced that it plans to expand its current offering of women’s wear to two more lines. The privately-owned retailer – which operates 98 outlets across the UK - plans to offer homeware as well as eyecare to its staple line.
Chief executive Nick Samuel has been negotiating third-party licenses for both homeware and eyecare, and the two lines are expected to be available from his fall. If these new additions prove to be a success, the company is believed to expand its range to include menswear.
The announcement was made following the release of the retailer’s first quarter results. Sales have risen 31 percent in the quarter, with a profit forecast for the year ended January 2007 of around £19 million. This about 25 percent higher than it had initially predicted.
Samuel described the first quarter performance as “outstanding” and expressed his belief that current trading levels would continue.

www.hobbs.co.uk
3 May 2006

Hobbs appoints new directors

British fashion chain Hobbs has appointed a new finance director. Nicky Dulieu joins the company from Marks and Spencer's food division, having worked in retail stores before that.

Dulieu will be replacing Mike Trotman, who is believed to be moving to an as yet unknown private company in the retail sector.

Meanwhile, Hobbs as also hired Liz Davies as design and buying director. Davies is the former wife of George Davies, the brain behind M&S's Per Una line.

Hobbs has plans for major expansion this year. It will increase its number of UK stores from 94 to 108 and will also open two stores in the Middle East. Furthermore, it is contemplating the North American and South East Asian markets.