Monday 18 October 2010
Overseas trade boosts profits
Just ahead of the cut quick / don't cut quickly positions of the chancellor / shadow chancellor, it mighty be worth noting that many retail firms have reported mild growth up to September. But an awful lot have reported growth from overseas... here's just a sample from various PR department's output last week.
Spirits Group Diageo has reported a 5% rise in first quarter underlying sales despite weaker trading in Europe. The group said sales rise was driven by growth in emerging markets including Russia, Latin America, Africa and Asia.
Sales in Greece and Spain were markedly down year-on-year, reflecting the debt crisis in the European economies.
Online fashion business ASOS has posted yet another strong set of results as the company continues to grow. In the three months to September 30th, the company saw retail sales rise 47% year-on-year, with UK sales up 21% and international sales up 128% in a period which saw the launch of the company’s US website.
Versace is forecasting sales to reach more than £247 million this year compared with £236 million in 2009....plans to bring the Versace label back to Japan in 2011. The Italian fashion house withdrew from the region in 2009, after reports it was struggling financially.
N Brown Group ... we are encouraged by the strong demand from our younger titles, the international performance of Simply Be Germany as well as the launch into the USA.
Retailer Mothercare today said its "rapid" international growth meant it was now generating more sales overseas than in the UK.
Cut backs on UK spending may be somewhat offset by growth overseas.
We may all be in it together, but those able to take advantage of the low £ to export may not be so badly affected by the UK slowdown.