Outdoor retailer Mountain Warehouse is dreaming of a white Christmas after sales tailed off from storming growth in the first half amid the warm autumn weather.
Founder and chief executive Mark Neale said sales growth at shops open longer than a year was “marginally positive” since August as unseasonable weather hit clothing retailers across the high street.
“It has got harder, in common with everyone else like Next and Superdry, we are vulnerable to the weather,” he said. “There was no snow last year so comparatives will be soft but there’s a lot to play for over Christmas.”
The jackets-to-jumpers retailer posted record first-half sales, up 24% to £47.5 million as profits rose 43% to £5.1 million. Like-for-like sales rose 11.8%.
The retailer, which will next week open its 200 shop, in Inverness, was bought for £85 million from minority shareholder Lloyds Banking Group’s private-equity arm in a management buyout led by Neale last year.
He said its low prices had tempted shoppers from Cornwall to the Scottish Highlands to spend. It plans to open in Germany and the Netherlands next year to add to its stores in Poland, Austria and Ireland.
The retailer enjoyed strong growth in online sales, which rose 85.7% in the half to August 24. Total annualised sales broke £100 million for the first time over the last 12 months.
Neale said the retailer wants to add to its four central London stores – in Covent Garden, Putney, Richmond and on Regent Street – but rents in the capital are prohibitively expensive.
