Mountain Warehouse, the UK’s largest outdoor clothing business, has announced record results for the year to the end of February. Its sales were up by30.8 per cent to £184.8 m (2016: £141.4m) with pre-tax profit up 22 per cent to a record £19.8m (2016: £16.2m). Of this online sales grew by 50.6 per cent and now account for 25 per cent of overall sales. International sales had grown by 100 per cent to account for 25 per cent of sales. During the period 41 new stores were opened and created more than 400 new jobs and the business is continuing on its growth trajectory and planning 40 more stores in the fiscal year 2017/18.
Founder and CEO Mark Neale said: “We started with a single shop in 1997 and 10 years later in 2007 we had around 40 stores with sales of about £20m. My wife used to say that it took us 10 years to become an overnight success! The downturn in 2008 allowed us to start growing really quickly when stores became easier to find and customers were looking for fantastic value. We passed 100 stores in 2010 and have been on a steep climb since then with online and international playing a bigger and bigger part in the business.”
He confirmed that the journey still has a long way to go with the group planning to open 40 more stores this year, creating at least 400 jobs. He also sees scope to eventually have more than 300 UK stores and for international to be at least as big as the UK business.
The company is exploring the possibility of opening stores in Czech Republic to build in the success of its business in Poland where it has opened three more stores in recent weeks, taking the total to 15. It is also looking for more sites in Germany.
The Mountain Warehouse approach to growing the business over 20 years has always been to try new things. “If they work we push them as fast as we can but if they’re not so successful we don’t bash our heads against the wall. My view is, if some things aren’t failing you’re probably not being ambitious enough, not exploring enough new possibilities,” said Neale.
In recent years, part of the focus has been on weather-proofing the business by widening the product range to include running and cycling kit and more summer clothes, particularly for children. This includes a collaboration with TV explorer Steve Backshall, who helped design a range of shorts, T-shirts and backpacks featuring sharks, giraffes, wolves and other wildlife designs.
In November 2015, the company launched a ‘sporty sister brand’ Zakti, to enter the rapidly-growing ‘ath-leisure’ market. Zakti is currently collaborating with former Pussycat Doll Kimberley Wyatt to produce a range of activewear that is proving hugely popular.
What sets it apart from competitors is that almost all its stock is exclusive to Mountain Warehouse. By designing its own top-quality products, and having them made to exacting standards, it is able to ensure that customers get top-quality products at very competitive prices.
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