30 Jun 2017
Pentland Group plc, the global brand management and retail group, today announces results for the year ended 31 December 2016.
The full year results reflect a good performance from the Brand Management Division, Pentland Brands. Despite some challenging markets around the world, several of the group's brands outperformed expectations. These included Ellesse and Ted Baker Footwear.
The Retail Division, comprising JD Sports Fashion plc, in which Pentland Group is the majority shareholder, delivered another record result due to: favourable trends for athletic-inspired footwear and apparel in Europe; continued international expansion of its portfolio; and growth through acquisitions.
• Total revenue up 21% to £2.9bn (2015: £2.4bn);
• Revenue from the Pentland Brands portfolio and other non-retail businesses up 1% to £634m (2015: £629m);
• Record performance from JD Sports Fashion plc, with revenue up 28% to £2.3bn (2015: £1.8bn);
• Group operating profit up by 50% to £331m (2015: £220m);
• Net cash at year end of £375m (2015: £300m);
• Net assets increased by 32% to £1,044m (2015: £791m).
Despite continued challenging global market conditions, Pentland Brands performed strongly as a result of focusing on building its presence in priority markets and its relationship with retailers and partners, which helped achieve record performances for a number of its brands.
In 2016, Pentland Brands reorganised the business into two divisions - Active and Footwear - simplifying how it works with partners and retailers and helping it to better integrate new brands.
Speedo moved to a direct-to-consumer business model in China. This change supports the brand’s long term sustainable growth in this priority market.
Ellesse enjoyed another year of strong performance in 2016, as a result of a favourable trend in sports fashion, with a 45% increase in revenue growth.
Teamsports (Canterbury and Mitre) delivered strong growth with its key trading partners.
Ted Baker footwear had another strong year in 2016, achieving 6% increase in sales growth across all UK channels, US department stores and e-commerce sales.
Pentland Brands was named one of the UK's Best Workplaces 2016 by the Great Place to Work Institute (GPTW) and awarded 11th in the ‘best Large Company’ category; the highest-ranking family company and the only sports, outdoor or fashion brand-owner to make the list.
The Berghaus Extrem 8000 Pro jacket was crowned best in class at the 2016 ISPO Awards, Europe’s leading outdoor trade show awards.
Ted Baker was awarded Men’s Fashion Brand of the Year and International Footwear Brand of the Year at the Drapers Footwear Awards 2016.
JD Sports Fashion plc had an exceptional year with operating profits strongly ahead of the prior year. This performance was driven in particular by strong trading in its core Sports fascias, which have continued to exploit the buoyant market for branded athletic footwear and apparel across Western Europe.
The outdoor fascias made encouraging progress in 2016 with Blacks and Millets stores delivering increased sales and profitability as a result of an increased focus on the outdoor proposition.
Further information on JD Sports Fashion, and its results for the year ended 31 January 2017, is available at www.jdplc.com.