House of Fraser starts 2014 in fashion

Friday, 03 January 2014
House of Fraser starts 2014 in fashionNot only it has recorded the best Christmas sales results ever, but now House of Fraser is allegedly posed to kick-start the initial public offerings (IPOs) in 2014 in London. Privately owned House of Fraser appointed investment bank Rothschild in early December to examine a potential floatation.

“This performance demonstrates the success of our strategy to continuously improve our online proposition, develop both our house brands and premium branded proposition and invest in our stores to give our customers the best possible shopping experience."

TheHouse of Fraser starts 2014 in fashion fashion retailer has seen a 4.3 percent rise in sales in what the management of the company has described as their best ever trading period.

This success is explained by chief executive John King as to lie in their strong focus on fashion, which accounts for two thirds of sales and that has become the main element of differentiation from direct competitors.

In parallel, classic retail trends have boosted the retailer´s performance in Glasgow and Belfast, where there is less competition for premium fashion, revealed King to press.

Online sales also added, delivering a 57.7 percent striking growth and, according to House of Fraser, outperforming the market.

Strong Christmas sales warm up IPO´s hunger at HoF

”We are ready to float,” advanced House of Fraser chief executive John King after breaking the strong results, reported the ‘Times’.

“With the record sales and margin performance in the period and a close focus on operational efficiencies, we expect to report a further growth in full year earnings. Given the sales performance, we also expect to finish the year with a cleaner stock position and lower net debt and are well placed to deliver further growth in 2014.”

In a matter of weeks, House of Fraser has whipped off all fears expressed just before Christmas by analysts on a potential IPO. It´s noteworthy that, in order to get rid of the debts that burden the retailer, House of Fraser hired in late 2013 financial advisory group Rothschild to advise on a float.

Additionally, owners are also in talks with Galeries Lafayette, which has the right to exclusive discussions until the end of January.

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