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Monsoon posts disappointing sales

British fashion chain Monsoon has said that a tough Christmas has caused its results to slip. Like-for-like sales dropped 8 percent in the eight weeks ended 20 January. Total sales rose a modest 1 percent. “It has been a difficult six months with like-for-like sales declining boh in the UK and overseas,” said chariman Peter Simon. “Sales growth has been driven by new stores but this has impacted costs.” Pre-tax profits dropped 5 percent to £24.2 million on turnover up 17 percent to £265.9 million. Operating profits fell 5.6 percent to £24 million.

Up on the upside, Simon said: “Despite difficult trading conditions leading up to Christmas, stock levels going in to the winter sale were less than last year, helping to maintain margin.”

Analyst Richard Ratner of Seymour Pierce adjusted his full year profit forecast from £59 million to £55 million. The profit forecast for 2008 was cut from £69 million to £63 million. He said the drop in fashion sales was to be expected as the fall had been a difficult season. However, he did express concern for Accessorize, the group's accessories chain, stating that competition in that product area was increasing.

Meanwhile, Monsoon is facing a boardroom shuffle in a few months. Chief executive Rose Foster and finance director Mark McMenemy will be leaving the company after resigning in November and September respectively. Foster managed to sell her share in the company for £380,000 the day before she handed in her resignation. The company is currently looking for their replacements. Simon said interim management was of a “high calibre”. “Our focus during this transitional period will be on maximising returns from our exsiting UK stores while continuing to expand internationally.”

Sales in the UK and Ireland climbed 14 percent to £231.4 million, although net operating profits dropped 11 percent to £17.5 million. Sales aborad enjoyed better results, with sales up 33 percent to £34.5 million and operating profits gaining 13 percent to £6.6 million.

www.monsoon.co.uk
26 January 2007

Elizabeth Hurley the new face of Monsoon

High street retailer Monsoon this week confirmed Elizabeth Hurley will be the face of its new campaign and replace Sophie Ellis-Bextor at the end of the season. Hurley follows in the footsteps of Jodie Kidd and Sophie Dahl, with a series of photographs that are as stunning as they are sexy. The 41-year-old actress and model is reputedly set to earn a 6-fixure sum, which the media say will be cover the costs of her lavish wedding to fiancé Arun Nayar this Spring.

Monsoon was founded in 1973 by Peter Simon following a period of selling shaggy woollen coats on the Portobello Road and hand block printed clothes from Rajasthan to anyone who would buy them. The original focus was always clothes with an ethnic origin from faraway places, including unusual dresses from Afghanistan and countries en route.

Monsoon this month launched a new range of sterling silver jewellery to complement its existing accessories collection. Prices range from £29- £120, available this Spring from selected Monsoon stores, Debenhams, House of Fraser, Earnest Jones and its online boutique.

www.monsoon.co.uk
24 January 2007

Monsoon chief resigns

Monsoon is facing a difficult holiday season following the news that its chief executive Rose Foster has resigned. The announcement was made just a day after she had revealed that she had sold her stake in the fashion chain worth a reported £380,000. Foster joined Monsoon, which is partially owned by founder and chairman Peter Simon, in 2001 from New Look. She had resigned from her post once before in 2003 to join Littlewoods, but was persuaded to stay on by Simon. This time she is leaving to join a private equity-backed venture. In a statement, she said she was leaving to pursue a “new opportunity”, but would not reveal what that was. She will stay on at Monsoon until May 2007. “The board would like to thank her for the enormous contribution to the growth and development of the business over the past 5 years,” the fashion chain said in a statement. “The company is reviewing the structure of the board and management, and further announcements will be made in due course.”

www.monsoon.co.uk
20 November 2006

Monsoon chairman plans demerger

Monsoon chairman Peter Simon is planning to demerge the fashion group's international business and take it private. Simon, whose family controls 75 percent of the £676 million company, may face resistance from minority shareholders. He tried to buy them out earlier this year, but to no avail. Monsoon investors told the FT that the growth potential of the 358 store strong international business was one of its main strengths. A hedge fund manager said that Simon's buy-out plan might not be in the interest of minority shareholders, but did say that spinning off the international division could prove fruitful. Simon told the FT that he had “increasing concerns about the exposure to more volatile revenue streams from the higher risk territories” and “looking at a number of ways of de-risking the business.” Some critics say that a buyout is not required to protect minority shareholders from risk.

On Monday Monsoon said that the international division was outperforming the UK division. UK sales came to a stand still, while international like-for-like sales gained 3 percent, boosting turnover by 33 percent to £485 million last year. Simon called last year “the most challenging year in the company's history”. He said cash reserves had been “exhausted” and would take on debt for the first time in over thirty years. Last year's £43 million acquisition of 47 Etam leasehold stores has caused the company difficulties, admitted Simon. Pre-tax profits remained unchanged at £53 milllion, despite a rise in group sales.

www.monsoon.co.uk
25 July 2006

Monsoon aspires to directional fashion

Monsoon is planning to offer a younger and more directional fashion brand in addition to its current label. The line, to be called ‘Fusion’ will be aimed at the TopShop and River Island customer, a younger, more fashionable customer who doesn’t necessarily shop at Monsoon.
The new range could be in-store as early as this autumn, although an official launch date has not been confirmed.

It is thought the Fusion range will be sold alongside the mainline Monsoon product in stores, although it is not known whether it will have a dedicated shopfit. Monsoon is understood to be recruiting for the project, but the company declined to comment on the plans to Drapers.
The move is the latest step in Monsoon’s expansion from its original niche positioning to a full-blown lifestyle retailers. It has introduced mens and childrenswear over the past few years and is working on ways of focusing its ranges on more specific customers.
A more boutique-feel store opening on upmarket Westbourne Grove in west London last month, with product selected to appeal to local shoppers.

The initiatives come as conditions on the high street have worsened and Monsoon’s performance has slowed. It said in January that sales had been difficult throughout the autumn and that early spring sales had suffered because of higher than expected stock levels.
Like-for-like sales for the 10 weeks to March 23 were down 4 per cent, although pre-tax profits are unlikely to be less that the £53.1 million Monsoon made during the last financial year.

Monsoon no longer in share discussions

Last July Monsoon announced that it had entered into preliminary discussions with its Chairman, Peter Simon, regarding his family interests making a possible offer for the 24.6 per cent of the issued share capital not already owned by them.

The board announced that the family are no longer interested in proceeding with the possible offer.

On 16th January 2006 the Board announced that trading had been difficult throughout the autumn and like-for-like growth in the six weeks since the interim results had been based on significantly higher than planned stock levels as the business entered the winter sale.

The company said that Since then trading has continued to be very difficult. Like-for-like sales in the last 10 weeks have been - 4 per cent, and new stores have been disappointing. Consequently the results for the year to 27th May 2006 will be adversely affected, although the outcome is unlikely to be less than the £53.1m profit before tax achieved in the previous financial year.

Monsoon records H1 profit drop

Monsoon, owner of the Monsoon and Accessorize clothing and accessories chains, recorded a drop in pre-tax profit of 8 percent to £25.5 million in the first six months ended 26 November. The acquisition of 43 stores from the Arcadia Group in April 2005 accounted for charges of £4.53 million related to pre-opening costs. Costs related to the acquisition of stores from Etam also contributed to the reduction in profits. Total sales in the first half rose 35 percent to £228.1 million.

Founder and chairman Peter Simon said that he had “underestimated the very difficult trading conditions that ensued through the autumn season” back in July and that the company had suffered declining like-for-like sales until sales picked up over Christmas. He said the recovery was due to “significantly higher than planned” stock levels continuing into the winter sales.

www.monsoon.co.uk
16 January 2006

Monsoon sales drop

British fashion and accessories company Monsoon has reported a slowdown in sales during the summer season, which it said was due to slow trading on the UK market. Same-store sales for the 17-week period ended 24 September climbed 8 percent, but growth slowed down to 3 percent in the last ten weeks of the period. Net sales soared 39 percent during the period. Chairman Peter Simon said that the company was “confident in the strength of Monsoon's products and brands”. He did say, however, that expectations for the Christmas season were still unclear. Earlier this year, Monsoon – which operates Monsoon and Accessorize chains – bought 47 leasehold stores from Etam Plc in a bid to expand its retail offering.

www.monsoon.co.uk
3 October 2005

Monsoon reports sales increase

British fashion retailer Monsoon has reported an increase in like-for-like sales last year of 11 percent, rising to 16 percent in the first seven weeks of this financial year. The results are far removed from most of its competitors on the high street who have been suffering from the repercussions of a difficult market. Analysts warned that the recent figures look especially favourable compared to last year's weak start, but admitted that Monsoon's Boho chic look continued to score with shoppers in the youth fashion market.

The Simon family owns 75.4 percent of Monsoon and are in talks with owners of outstanding shares in a bid to increase their stake. It is chairman and majority shareholder Peter Simon's second attempt in two years to take the company private. The company's shares rose on Tuesday, resulting in a market capitalisation of £706 million. Justin Scarborough, analyst at Panmure Gordon, told the FT: “It is a shame for the market to be losing one of the better performing high street retailers – double digit rises in like-for-likes can't really be argued with. But it is more a question now of ‘when' than ‘if' it goes private.”

Pre-tax profits increased 20 percent from £44.1 million to £43.1 million in the year to 28 May. This result was after the compnay absorbed a £6 million exceptional charge related to the closure of a number of stores – mainly Etam – acquired from Arcadia . Total turnover, inclduing sales abroad, at Monsoon climbed from £271.4 million to £363.7 million. Monsoon has 336 outlets in the UK and Ireland , including a stand-alone Monsoon Mens store in Covent Garden . The Group is expecting capital expenditure to reach £70 million this year, including £40 million charge to concert the remaining Etam stores to Monsoon and Accessorize outlets.

www.monsoon.co.uk
27 July 2005

Monsoon in bid to go private

Peter Simon, the founder and chairman of Monsoon, is attempting to take the clothing chain private by trying to buy the 24.6 per cent stake of the company that he does not own.

It is the second time in less than two years that Mr Simon has tried to increase his share in the company he floated in 1999. It is not clear how Mr Simon will fund the buyback. But, with more than £500m already invested in Monsoon, he should be able to raise debt, if necessary. However, after a couple of years off fractious relations, Mr simon is keen to have a "mature debate" with shareholders this time round to see if there is common ground on price, said the company.

www.monsoon.co.uk
24 July 2005

Monsoon buys Etam

Fashion store Monsoon has bought 47 leasehold shops from Etam for around £43m. Monsoon says it plans to covert the stores to the Monsoon or Accessorize formats. The deal would boost its presence in Britain's competitive retail sector, it said. Monsoon also said current trading was in line with the company's expectations. "We are pleased with this acquisition which will expand Monsoon's presence across the British high street," said chairman Peter Simon.

The buy-up will result in the closure of small stores and a one-off write off of around £4m, with sell-offs accounting for a further £2m.Earlier this month, entrepreneur Philip Green said he had bought the UK arm of French clothing chain Etam. The costs are to be taken into the accounts for the year ended May 31, 2005 as an exceptional item.

www.monsoon.co.uk
19 April 2005

Monsoon sues Primark

British high street chain Monsoon is suing budget retailer Primark for allegedly copying six of its garment designs. Primark has already removed the offending goods from its shops, but Monsoon insists that Primark's "continuing copying" is "clearly unacceptable" and that it wants damage compensation of GBP 200.000, including a promise by Primark never to repeat the violation.

Monsoon claims that the clothes that Primark sold, which cost a quarter of the price of the Monsoon versions, are of a lower quality than its own and damaging to its image.

Monsoon is referring to a zigzag-patterned linen skirt, a curved panelled skirt, tropical print swimwear, girls' corduroy trousers, a children's striped scarf and socks with poodles and hearts printed on them. Last year Primark was forced to pay Monsoon GBP23.000 for selling what the company claimed to be copies of two of its garments. Monsoon says that the budget retailer has copied more of its designs since.

www.monsoon.co.uk
18 April 2005

Monsoon Reports Strong Sales

Fashion retailer Monsoon has reported a strong performance over the generally tough Christmas trading period on the UK, continuing a trend seen across the first half of its financial year. Monsoon, whose founder and chairman Peter Simon took the business largely private last year, saw total sales grow by 29 per cent to £169m in the six months to November 27, with like-for-like sales up 10 per cent.

In the six weeks up to January 8, total sales grew by 38 per cent, with like-for-likes up 13 per cent. Monsoon said its stock position is in line with expectations after a 'satisfactory' start to the sale, and despite the current 'difficult' trading environment, "we are confident that we will deliver a satisfactory performance for the full year".

Pre-tax profits for the half year grew by 32 per cent to £27.8m. Across the six months the group, which operates the Monsoon and Accessorize chains, opened 23 new stores, including 12 re-sites. The group has 326 outlets in the UK and Ireland, including 136 Accessorize, 117 Monsoon, 70 dual outlets and three concessions. The Monsoon Men brand was launched in October.

International retail sales, mainly through franchisees, were up 3 per cent in local currencies, with 39 new stores opened including 6 stores in new countries - Holland, Sweden and Turkey. Monsoon now have 198 stores trading in 27 countries. In November, the group reacquired its Russian franchisees rights along with seven stores, which are now operated directly. The company said its plans to expand its presence in Russia significantly.

Peter Simon said: "We are pleased with this performance. The benefits of the investment in our two strong brands are bearing fruit. We are not complacent as we recognise we are trading in difficult environments." In a reference to the freedom private ownership brings, he added: "We look forward to investing our money on long-term projects at the appropriate time without any pressure to do so."

www.monsoon.co.uk
17 January 2005

Monsoon To Launch Menswear

High street retailer Monsoon is to lunch a menswear range later this fall to complement its womenswear offer and become more lifestyle oriented. The collection is to be sold in 12 stores as well as a menswear only store to open in Covent Garden, London.

Monsoon menswear will be positioned in line with its womenswear range and its casual wear will set it apart from competition through attention to detail such as special linings in jackets or printed shirts. The flagship store will be re-fitted, wile new menswear areas in existing stores will be given a version of the store treatment. The trial stores include some of the chain's larger units in Marble Arc, Birmingham Bullring and Brent Cross.

The collection will also be trialled in selected smaller stores that have a second floor, such as Oxford, Bath and Exeter. Monsoon reported sales up 17.4 per cent to GBP271.4 million for the 52 weeks ended May 29. Pre-tax profits were up 15.4 per cent to GBP44.1m. Like-for like sales were up 5 per cent.

www.monsoon.co.uk
29 July 2004

Monsoon Sees Profits

Monsoon has reported strong growth for the year to May 29, laying the ground for further expansion for the fashion and accessories retailer. Group turnover increased by 17.4 per cent from GBP231.2m to GBP271.4m, with like-for-like sales up 5 per cent. Pre-tax profits were up 15.4 per cent from GBP38.2m to £44.1m.

The year saw 28 new stores and extensions across the Monsoon and Accessorize brand, as well as five re-sited stores in the UK and Eire. There were also 58 new franchised stores opened internationally.

www.monsoon.co.uk
27 July 2004

Monsoon Buys Dixons' Stores

Fashion and accessories retailer Monsoon is boosting its UK store network with a deal to buy 21 stores from Dixons. The stores form part of the package of high street outlets electricals retailer Dixons has earmarked for closure as it moves to larger formats and out-of-town sites.

The deal will provide Monsoon with an additional presence in 16 towns in the UK which currently have no Monsoon or Accessorize stores, the company's two retail brands.The stores will be converted to the Monsoon or Accessorize formats over the next 4 months. Overall they will increase the group's trading space within the UK by 12 per cent.

Following the acquisition, the group will have 117 Monsoon stores, 135 Accessorize, 66 joint format stores and two concessions. Monsoon said: "This acquisition will accelerate our already developed expansion programme."

As a result of the Dixons deal and further investment in Russia, Monsoon's capital expenditure for the year to May 2005 will increase to GBP33m, compared with an average of GBP13.5m overall the past three years. Monsoon said it expects to continue investing in store expansion, adding that current trading for the group overall is in line with expectations.

www.monsoon.co.uk
1 July 2004

Monsoon Opens in Bullring

Monsoon opened its largest store to date in Birmingham's Bullring last week. The 7,200 sq ft store will showcase Monsoon womenswear, bridal, vintage, kidswear and homeware, as well as an Accessorize. The flagship will have a new storefit by Project Orange, which was also responsible for Monsoon's Oxford Street store in London.

www.monsoon.co.uk
4 December 2003

Monsoon To Move From Main Stock Market

Monsoon founder Peter Simon has upped his family trust's stake to 75.5 per cent, triggering the company's move onto the AIM market. However, many shareholders rejected the offer, leaving Simon shy of the 92.5 per cent he was aiming for. A significant piece of the company is therefore still in independent hands.

15 October 2003
www.monsoon.co.uk

Monsoon Trading Strong

Monsoon has reported a continued increase in sales as plans by company founder Peter Simon to take the business off the stock market come to a head.

The independent directors of Monsoon have issued a statement saying that total sales for the 14 weeks September 6 are 28 per cent, with like-for-likes up 10 per cent. The overall performance of the group, which operates the Monsoon and Accessorize chains, remains strong.

October 3 is the deadline for shareholders to exercise put options issued by Stoneycroft ltd., representing a Simon family trust, which aim to increase the family's control to more than 90 per cent of total shares. At that point, Monsoon will delist from the main stock market but may maintain a smaller AIM listing.

The statement also said the Monsoon board has received a letter directors of Beauchamp (UK), which controls 62.7 per cent of the issued share capital, requesting board representation. Peter Simon is the sole beneficiary of the Beachamp trust. The request will be considered at the next board meeting.

September 17 2003
www.monsoon.co.uk

Monsoon Re-design Well Received

Monsoon opened its flagship on London's Oxford Street last week alongside the launch of its autumn advertising campaign featuring Jodie Kidd. Shoppers who braved the warm temperatures said the redesigned store had refreshed the monsoon brand. The 4,700sq ft store, situated at the Marble Arch end of Oxford Street, is now the largest Monsoon store in the UK.

28 August 2003
www.monsoon.co.uk

Jodie Kidd Horses Around For Monsoon

Jodie Kidd, the supermodel turned horsewoman, shot the new Monsoon advert posing naked on a horse, except for an ivory chiffon beaded shawl.

Kidd is fast becoming as famous for her exploits on horseback as on the catwalk. The girl whose emaciated frame shocked the fashion world when she began modelling in the late nineties, has since taken up polo and re-emerged two stones heavier, fit and healthy. She now says many designers consider her too heavy to model for them. "The designers want me skinnier," she recently complained. "They don't want me muscly, but I'm really happy with my body."

Monsoon celebrated its 30th birthday this year and opened a new flagship store in Marble Arch. The first boutique in 1973 was in Beauchamp Place, Knightsbridge.

22 August 2003
www.monsoon.co.uk

Milan gets Accessorized

British womenswear retailer Monsoon has opened an Accessorize store in Milan and now operates five stores in Italy. The company plans some 30 new Accessorize stores will open outside the UK this year. Accessorize continues to expand rapidly throughout the World, with brand new stores opening in Italy and Greece.

March 21, 2003

Monsoon positive despite dip

British fashion chain Monsoon announced its summer trading was in line with expectations and revealed a three per cent climb in same-store sales for the five weeks to September 28. Internationally, the retailer added that sales and profits had grown while costs were kept under control. Profit performance in the first quarter was improved while total retail sales in the 18 weeks since the year-end of May 25 grew 10%. But underlying sales for the same period fell by one per cent, and shares in the group dipped 1.5p to 113p. Concerns have been growing in the City recently that, with evidence suggesting the high street boom is slowing, the retail sector as a whole could suffer. Monsoon however, which also owns the Accessorize chain of stores, was upbeat about its performance.

Monsoon operates around 250 Monsoon and Accessorize stores in the UK, Australia, Denmark, France and the United States. In July, the retailer reported a 32 per cent jump in full-year pre-tax profits to GBP 32.1 million from GBP 24.3m in the year-ago period thanks to soaring sales and new store openings. Commenting on the latest figures, chairman Peter Simon stated: "Sales of autumn merchandise at full margin increased and this resulted in an improved margin being achieved. Performance is in line with our expectations at the time of our results in July and we remain confident."

10-02-02
www.monsoon.co.uk