Fashion retailer AllSaints said on Tuesday that revenue edged up to a record level and profits jumped in the year to February as it focused on a full-price strategy.

The group, which owns its eponymous chain and the John Varvatos luxury menswear brand (which it acquired three years ago), said total revenue in the year to 3 February rose 0.6% to £459.5 million.

That came as it saw a reduction in promotional and markdown activity, as well as a changing sales mix due to the focus on growing wholesale, franchise and licensing “to reach more customers than ever before”.

AllSaints brand revenue was also up 0.6%, at £393.5 million. But retail revenue (stores and e-commerce) dropped 2.9% to £316.5 million, although the digital performance continued to benefit from investments made in 2022. Non-retail (wholesale, franchise and licensing) revenue was up 18.4% at £77 million.

And John Varvatos revenue was virtually flat at £66 million after £66.1 million a year earlier.

Despite the small headline revenue rise, importantly the group said its gross profit margin increased to 63% from 62.2%, “driven by positive customer reactions to seasonal product launches, reduced promotional and markdown activity and continued efficient inventory management”.

That all helped drive pre-operating exceptional EBITDA up 18% to £68.9 million and post-operating exceptional EBITDA was up 26% at £74.4 million. Operating profit rose 40% to £39.9 million and the net cash position of £58.1 million improved from £46.8m at the end of the previous period.

The company was opening stores during the year with key debuts including an AllSaints new concept store in Los Angeles, the first AllSaints store in mainland China in Shanghai, and a new John Varvatos store in Houston.

It added that since the period end, the “trading performance has been in line with expectations” but didn’t give any more details about specific numbers. It said the direct retail trading strategy for the current year “has shifted towards targeted promotional activity and away from midseason sale activity. This, and the earlier launch of seasonal product to lengthen full-price selling periods, will further enhance gross margin performance”.

It has also in the new financial year expanded its licensing partnerships for AllSaints in particular, with the launch of the new ‘smAIISaints’ kidswear in May, the launch of a new AllSaints fragrance collection, men’s tailoring and underwear collections later in the year. And after last year’s successful launch of sunglasses, an optical eyewear range launched in the spring.  

It has focused on new and upgraded stores too and relaunched its first UK store to showcase the new AllSaints store design concept in the Trafford Centre in Manchester in March.

Meanwhile in July, it opened a new, third-party-operated European distribution centre in the Netherlands.

CEO Peter Wood said “there is good momentum across the entire Group, with John Varvatos delivering a great start to the year.  As a result, we remain as confident as ever in our future prospects”.