Hotter Shoes has hailed its “extremely pleasing strong” trading as it reports a fall in supply chain disruption and its owner completes the demerger of TGI Friday’s.
The Lancashire-headquartered company added that it has seen the “continuation of the key trends underlying the business” such as “direct to consumer driven revenue” and “a rapidly accelerating capture of email addresses”.
The business added that it generated an EBITDA of £2.5m and a revenue of £25m in the six months to the end of July 2021 while for the 12 months to the end of October its revenue hit £50.4m.
The update comes as its owner Electra Private Equity successfully floated Hotsmore, which includes TGI Friday’s, on the London Stock Exchange.
A statement issued to the London Stock Exchange said: “Current Hotter trading has been strong and extremely pleasing in light of the market wide supply chain issues and other headwinds facing ecommerce businesses.
“Hotter is seeing a continuation of the key trends underlying the business including direct to consumer driven revenue growth, gross margin expansion and a rapidly accelerating capture of email addresses taking its database to over one million, up from 850,000 in September 2021.
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“App downloads continue to accelerate and there is also a continuing recovery in sales within the retail channel.
“Hotter is seeing a reduction in the supply chain disruption evident at the start of the autumn/winter season in August and September.
“Hotter’s UK manufacturing facility has provided some resilience and the reopening of supplier factories following Covid lockdowns in India and Vietnam has allowed product availability to recover in October, with further progress expected before the key November trading period.
“Product demand has remained high during this period of disruption and Hotter’s direct-to-consumer focused model allows some level of back-orders to be accumulated that are being satisfied as components and finished goods become available.
“The impact of costs on the supply chain has been primarily in relation to incoming freight costs to accelerate raw material delivery on reopening of supplier factories. Supply disruption has resulted in increased levels, and costs, of air freight.
“These costs are reflected in trading results over recent months and represent a future opportunity as the supply chain reset continues and sea freight is reintroduced as a more cost effective and environmentally friendly transportation option.”