AllSaints, John Varvatos Post Strong Revenue, Profit Growth in Fiscal 2023
LONDON – Sister brands AllSaints and John Varvatos saw sales and profits climb in the year to January 2023.
The results include a full year of business for the New York-based John Varvatos, which AllSaints purchased in October 2021.
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Total revenue for the 12-month period was up 36 percent to 457 million pounds. AllSaints revenue rose 25 percent to 390.9 million pounds, with retail up 22 percent, and wholesale, franchise and licensing revenue rising 44 percent.
John Varvatos revenue was 66.1 million pounds.
Operating profit for the group nearly tripled to 28.5 million pounds, while post-operating, exceptional earnings before interest, taxes, depreciation and amortization rose 66 percent to 59.1 million pounds. The group’s net cash position was 46.8 million pounds, compared with 31.1 million pounds in the corresponding period last year.
The fashion group’s performance was bolstered by new products and continued international store rollout, including in Taiwan and South Korea, and the momentum has continued into the current year.
Since January, the group’s performance “has continued to be positive, with both AllSaints and John Varvatos brands delivering good revenue and EBITDA growth,” AllSaints said.
It added that investment in a new e-commerce platform in the prior year “has continued to improve customer service capabilities, and is supporting a strong digital performance.”
The group opened the first AllSaints store in mainland China, in Shanghai, in April. Product and store innovation has also continued, with a new AllSaints sunglasses collection which launched in the spring and a fresh AllSaints store design concept that was recently unveiled in Los Angeles.
Peter Wood, chief executive officer of AllSaints, described fiscal 2023 as “a record year for AllSaints. The performance has been driven by our intense focus on product development, e-commerce excellence, growing our global store network, and rigorous inventory management.
“During its first full year with us, we’ve also been pleased with the performance of John Varvatos, which has returned to growth and is showing huge potential in the alternative luxury menswear market. Given the strong momentum across both brands, and our proven resilience, we remain hugely confident in the group’s future prospects,” he said.
As reported, John Varvatos sold his company to Lion Capital, which owns AllSaints, in 2020. Lion had the winning bid at an auction for the bankrupt men’s designer brand’s business.
The Lion bid was in the $97 million range, according to estimates in sale documents filed in Delaware bankruptcy court, where John Varvatos filed for Chapter 11 in May 2020.
Varvatos exited his namesake brand following Lion’s purchase, and set up a new brand and business called OTD — On This Day.
That brand, which offered a large number of stock keeping units for men and women and had two big brick-and-mortar locations on both U.S. coasts, shuttered earlier this year, due to a variety of factors, including the impact of the pandemic.
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