LONDON — Sales and profits at Stella McCartney Ltd. are on the rise as the company continues to expand its retail footprint worldwide.
This story first appeared in the September 28, 2012 issue of WWD. Subscribe Today.
In the fiscal year ended Dec. 31, sales at Stella McCartney Ltd. advanced 19 percent to 21 million pounds, or $33.6 million, while profits climbed 0.5 percent to 2.9 million pounds, or $4.6 million, according to documents filed at Companies House, the official registrar of firms based in the U.K.
All figures have been converted to dollars at average exchange rates for the 12-month period.
Stella McCartney Ltd. is the U.K. legal entity within the worldwide business, which is consolidated into PPR’s accounts. The U.K. division oversees the trademarks, licenses, and the brand’s two London stores, on Bruton Street and on Fulham Road. Stella McCartney is jointly owned by the designer and PPR.
The figures reported do not take into account wholesale sales or turnover from the brand’s directly operated stores outside the U.K.
Frederick Lukoff, president and chief executive officer, said growth in 2011 came from all product categories and from retail and wholesale sales. “It’s been very balanced,” he said.
He added the brand is “less China-driven” than some of its peers, because it still has a very small presence in the region. In August, Stella McCartney opened its first directly operated store in China at Réel Mall in Shanghai.
At the end of December, a second Chinese store — at Beijing’s new Parkview Green shopping mall — is set to open. Lukoff said the unit will be a two-story “statement store” spanning 3,500 square feet.
The momentum generated in 2011 has continued into the current fiscal year, he added. “We’re still growing healthily, although we’re remaining vigilant about the external environment. There is room to grow and we are optimistic,” he said.
In other news, L.I.L.Y., the brand’s second stand-alone fragrance, will launch in the U.S. at Sephora next week. McCartney will do a personal appearance in December to support the launch.
The brand currently has 20 freestanding stores and 25 shops-in-shop worldwide, and Lukoff said more retail expansion is in the pipeline for 2013, although he declined to provide details.