29th May 2008 07:00
29 May 2008
Hot Tuna PLC
("Hot Tuna" or "the Group")
Trading Update
Hot Tuna PLC, a leading surf wear and fashion brand, provides an update on trading.
Highlights:
Like for like sales for the Spring / Summer season for Hot Tuna increased nearly four-fold to US$2,118,000 (2007: US$593,000):
in the UK and Europe have increased 454% from £100,000 to £554,000;
in the US have increased 30% from US$240,000 to US$360,000; and
in Australia have increased 664% from 85,000 AUD to 650,000 AUD.
Secured orders from some of the leading department stores in the World: House of Fraser, David Jones, Myers and other high-end retailers in the US - Fred Segal in LA and Patricia Fields in New York
The restructuring of the Group over the past 6 months has seen a new management team begin to implement a revised strategy that began with re-defining the Hot Tuna brand as well as an overhaul in the style and design of the product offering. This has been very positively received and has enabled the Group to secure major orders from key department stores worldwide - from this the Group is confident it can build a more secure platform from which to re-launch the brand.
These improvements to the Hot Tuna brand have led to an increased level of distribution and enabled the Group to increase its prices and margins.
Hot Tuna has secured orders from leading department stores in Europe, such as House of Fraser in the UK and El Corte Ingles in Spain for its Spring 2008 season. In Australia, the brand is being retailed the two largest department stores in the country; David Jones and Myers. Recently Hot Tuna USA secured orders from high end retailers such as Fred Segal in Los Angeles and Patricia Fields in New York.
Like for like sales for the Group as a whole have nearly quadrupled from US$593,000 for Spring/Summer season 2007 to US$2,118,000 for Spring/Summer season 2008. This was achieved despite nearly 50% less staff than in the equivalent period last year. The headcount reductions are part of the Group's on-going improvements in efficiency.
The overall monthly overhead has been reduced from about US$616,000 in June 2007 to US$505,000 in January 2008. The target is to reduce the monthly overhead to about US$250,000 by June 2008, which the Group is on track to achieve, without jeopardizing the recent positive developments in sales, putting Hot Tuna on its way towards profitability.
Hot Tuna's enhanced brand appeal and focus as a fashion brand, rather than strictly surf-label, has also led to opportunities in new markets including Japan, Germany, China, Mexico and Scandinavia.
Recently Hot Tuna opened its first retail store in Los Angeles and will soon open stores in Sydney, Dubai and London.
Niels Juul, CEO of Hot Tuna PLC, said: "This fantastic performance is a testament to the huge amount of work that everyone at the Group has put into turning the brand around. We are now well positioned to take Hot Tuna to the next stage of its development.
Our initial strong results from our first retail store in the US as well as our continued success with our 15 shop-in-shop Hot Tuna concept stores in Myers has given us great confidence in our upcoming strategy of expanding into freestanding Hot Tuna retail stores and in-store concepts.
We are also excited about our planned expansion into Japan and China, with our new manufacturing and retail partners in Tokyo and Shanghai.
Our more fashion-driven focus and edgier profile has proven to offer customers a more exciting retail experience in a tough retail climate."
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Enquiries: |
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Hot Tuna PLC David Lenigas - Chairman Niels Juul - CEO |
Tel: 020 7016 5100 Tel: +12138919409
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Pelham PR Kate Catchpole / Gavin Davis |
Tel: 020 7743 6678
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Seymour Pierce Limited Mark Percy / Parimal Kumar |
Tel: 020 7107 8000 |
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