17th Feb 2022 10:05
(Alliance News) - Unbound Group PLC on Thursday said its unit Hotter Shoes is on track for a swing to profit for its recently ended financial year, and has also secured a partnership with FTSE 250-listed Marks & Spencer Group PLC.
Shares in the owner of Hotter Shoes were 9.8% higher at 56.00 pence on Thursday morning in London.
Hotter Shoes, a mainly digital retailer of comfort shoes, is set to deliver revenue for the year ended January 30 at GBP51.9 million, a 16% increase from GBP44.5 million the year before. This was driven a 16% rise in average selling prices, more than offsetting the significant challenges affecting Hotter's sector, namely supply chain issues.
As a result of the strong revenue performance, Hotter is expected to post pretax profit before exceptional items of at least GBP200,000, swinging from a loss of GBP6.6 million the prior year.
Looking ahead, Unbound said in spite of supply chain issues, Hotter has been well insulated, with the launch of the spring summer 22 collection in February, and fixed pricing agreements secured with several key suppliers.
Also on Thursday, Unbound announced that Hotter Shoes has inked a partnership with food and clothing retailer Marks & Spencer, which will see Hotter offer its products on the Brands at M&S platform.
Hotter will initially offer 32 products, which will gradually increase to 75.
"I am delighted that the progress we have made in resetting Hotter continues to be translated into improved financial performance and momentum. The partnership with M&S is further testimony to Hotter's attractiveness to other best in class retail platforms. The development of the Unbound Group platform is also gathering pace, we have strengthened the management team and we are currently engaged in positive discussions with a number of potential partners," said Chief Executive Officer Ian Watson.
By Dayo Laniyan; [email protected]
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