House of Fraser has recorded its highest ever gross profit in the wake of its acquisition by Chinese conglomerate Sanpower.
The department store’s adjusted earnings rose 8.3% to £60.2 million in the year to 25 January while gross profits hit £430.6 million, a rise of 6.6%.
Booming online sales and new private label launches, including Corsivo and Label Lab, are said to have contributed to the retailer’s strong performance.
CEO John King said that further enhancement of the group’s website, including a redesign and improved distribution proposition helped drive online sales up 41% last year.
“We are pleased to report another new record level of sales and gross profit for the year and a further improvement in the group’s earnings. The improved performance has been driven by the continued success of our key strategic pillars. Our on-line business has performed exceptionally strongly and has substantial future potential. Our House Brands sales grew significantly in the year and we achieved our highest House Brand gross margin rate to date,” said King.
“We have strengthened our relationships with our brand partners and continued our collaborative approach to improving store environments. This helped us to deliver Sales growth from our bricks & mortar stores, on top of the growth delivered in the previous year.”