Hamleys returns to profit after six years in the red
12 July 2010 09:52
Hamleys has returned to profit for the first time in six years. In the year to March 31st, the toy store reported a small pre-tax profit of £100,000 after a £4.1 million loss last year. The 250-year-old retailer is predicting a bumper Christmas, driven by an anticipated fever pitch demand for the new Buzz Lightyear jetpack.
Like-for-like sales rose by 5%, while total sales also increased by 5% to £60 million. Earnings soared by 80% to £4.6 million. Hamleys also reduced its debt during the year and restructured its head office, resulting in the loss of 25 jobs.
Speaking to The Times, chief executive Gudjon Reynisson said: "We are realistically optimistic for Christmas but it will continue to be a challenging year."
The retailer has fought off the challenge of Argos et al by focussing on differentiating itself from its competitors.
"When the climate is difficult, it is very important to focus on what makes us special. For Hamleys that is about the experience, the theatre and the magic of a visit to the store," Mr Reynisson added.
Trading in the first 14 weeks of the current financial year rose by 4%, boosted by strong sales of outdoor toys particularly in the company's Glasgow and Dublin stores.
Hamleys is planning to open its next international franchise store in Belgrade, adding to existing outlets in Dubai and Mumbai, and is in negotiations to open a possible store in Cardiff.
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