Monsoon and Accessorize, owned by Adena Brands Ltd, have undergone a strong recovery and are currently experiencing significant growth. Sales for MonsoonGroup increased by 43% to £258 million in the year ending August 31, with EBITDA reaching £24.4 million, a rise of 132%. The company also boasts a strong balance sheet, with no debt and £22 million in cash.

A noteworthy development is Monsoon’s shift from a digital-first approach to opening physical stores, in an effort to expand its presence. However, Accessorize remains the larger chain and is currently the main driver of growth. Adena Brands Ltd reported a 105% rise in UK retail like-for-like sales during the mentioned period, predominantly due to Accessorize and its travel business.

Over the past year, Adena has opened 19 new stores in the UK, with plans to open an additional 22 in the upcoming year. The company has also experienced significant digital growth, with online sales accounting for 45% of UK sales. Monsoon witnessed a 22% increase in online demand. Internationally, the business grew by 24% YoY, with non-UK operations contributing 19% to group sales.

Adena attributes the strong growth to increased sales and a robust gross margin performance, which saw a growth of 5.3% points. The company’s EBITDA figure more than doubled due to a lower and more flexible cost base. Despite the challenging economic environment, Adena saw year-on-year growth in both group sales and EBITDA in the first quarter of the new financial year.

Adena’s three-year turnaround strategy focuses on product and brand renewal, digital transformation, retail portfolio renewal, international expansion, and central cost control. The company has exceeded expectations in each element of the strategy and plans to continue its growth trajectory by emphasizing digital presence, expanding into new retail locations, and exploring international markets.

Adena has announced plans to open 22 stores in Europe and the Middle East, including new Accessorize stores in prominent European airport locations. Additionally, the recently acquired East brand has shown promising growth opportunities.

CEO Nick Stowe expressed satisfaction with the progress of the turnaround plan, highlighting Monsoon’s digital transformation, the launch of a new website, enhanced digital marketing efforts, and the introduction of ‘Monsoon Bazaar’, a marketplace for sustainable third-party brands. Stowe also praised the success of Accessorize’s retail business, particularly in travel locations within major airports.

Despite the challenging consumer environment, Stowe assured that the company is taking measures to control costs and capital expenditure. Nonetheless, he remains optimistic about the coming year, given the solid foundation established by the business.

Founder and chairman Peter Simon emphasized the brands’ resilience and ability to adapt to changing customer preferences. Simon expressed confidence in the business’s future as it approaches its 50th anniversary. To celebrate this milestone, the company plans to collaborate with partners aligned with its heritage while looking towards the future.

Useful links:
1. Monsoon
2. Accessorize