Hotter Shoes shows signs of recovery following 'difficult' 2018

Electra Private Equity-owned British footwear retailer Hotter Shoes has reported improved trading performance under a “much-strengthened management team” following a “difficult” 2018.

In the year to the end of January, sales at Hotter Shoes were 93 million pounds, down from 100.8 million pounds in the 2018 financial year, while unaudited figures for the last 12 months revealed sales of 88.9 million pounds.

For the 12 months to January, EBITDA was 3.5 million pounds, plunging from 9.5 million pounds in the 2018 financial year. However, it rose again to 6.2 million pounds in the last 12 months.

The retailer’s return on capital employed also showed signs of improvement. While it dropped from 5.9 percent to 3.4 percent from the 2018 financial years to the 2019 financial year, it returned again to 5.9 percent in the last 12 months.

Electra Private Equity said that these improved results reflect the footwear retailer’s ongoing recovery, partly thanks to what the company described as a “much-strengthened management team”. This included Ian Watson, who was appointed as CEO in March.

The company said: “Whilst market conditions continue to be challenging, excellent progress has been made in strengthening management and implementing the key strategic changes to the business and its products, necessary to significantly improve the performance and resilience of the business.”

Neil Johnson, chairman of Electra Private Equity PLC, said in the report: "Our results demonstrate the progress made at Electra over the last year, reflected in a significant NAV uplift on retained assets, as we actively manage our remaining portfolio of investments. We have made tangible progress in both of our two larger businesses, TGI Fridays and Hotter Shoes.

“The changes at Hotter are now progressing, with improved trading, under a much-strengthened management team.”

Photo credit: Hotter Shoes, Facebook