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Sales soar at Matchesfashion

Luxury retailer Matchesfashion has reported a 44% increase in revenue, reaching £293m, for the year to 31 January 2018 “driven by international expansion”.

Earnings before interest, tax, depreciation and amortisation were up 34% from £19m to £26m, and average order value was reported as £542.

Online sales at the business grew by 73%, with turnover rising 61% to £204m. Website visits increased 36% year on year to 75m.

UK sales grew by 45% compared to 80% for international sales. The company reported that 82% of its business is now generated outside of its UK home market.

The company results were boosted by a US expansion push, which delivered growth of 54% year on year making it the largest country by revenue, and increased purchases from existing customers.

But, despite this, the pace of growth has slowed, indicating a sign of growing competition for luxury spending online.

The retailer said that “technology has enabled the business to scale internationally, enhance the customer experience and power social innovation” through their daily content platforms The Style Daily and The Style Social.

CEO Ulric Jerome said: “Our mission is to create the most personal luxury shopping experience in the world, underpinned by insight, technology and our unique fashion point of view. The luxury customer is driven by discovery and our aim at Matchesfashion.com is to inspire loyalty by constantly nnovating and partnering with the best brands. We call it ‘luxury rewired’ and we’re investing at scale to meet these evolving customer needs.

“The global online luxury market is seeing strong growth but penetration is still very low, so the opportunity is huge. We continue to accelerate profitable growth in our international markets and we can see that momentum continuing throughout 2018.”

The company is set to open a new 500,000 sq ft global distribution centre and five-story townhouse residence in London during the summer.

The retailer, which delivers designer fashion items to 173 countries, also reported a jump of 140% in occasionwear sales over the royal wedding weekend.

Matchesfashion, which was founded in 1987 by Tom and Ruth Chapman, sold a majority stake to private equity firm Apax Partners, last September.

 

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