Hobbycraft revenues up 15% as online sales soar
Its latest results were largely bolstered by its online performance, as e-commerce sales rocketed by 58.2%
Hobbycraft has welcomed a “robust” set of results in its latest financial year, as revenue rose by 14.8% to £203.1m, up from £176.9m in FY21. Its full-year adjusted EBITDA hit £15.0m, meanwhile, up from £13.8m in FY21 and £14.8m in FY20, before the pandemic.
Overall, the group saw a total sales growth of 11.4% from the point stores reopened in April 2021 compared to pre-pandemic levels, and total LFL sales grew by 5.0% on a two-year basis, compared to FY20.
Its latest results were largely bolstered by its online performance, as e-commerce sales rocketed by 58.2% from the point that stores reopened in April 2021 compared to pre-pandemic levels.
In addition, its continued growth in Click and Collect sales reportedly drove footfall to stores, with Click and Collect representing 33% of all e-commerce orders overall.
Looking ahead, the group did note that the decline in consumer confidence amid the ongoing cost of living crisis will “present significant headwinds” for the coming year.
Nonetheless, it is planning further digital investment to enhance its online customer experience and proposition following the launch of its new customer website in March 2022. It will also aim to increase the range of online workshops where customers can “discover new crafts and master top techniques”.
In addition, the group said it plans to add to its current estate of 109 stores by opening three new stores across the UK, with new sites in Bromborough, Biggleswade and Southend.
Dominic Jordan, CEO of Hobbycraft, said: “The financial year began during the third national lockdown and as a ‘non-essential retailer’ our stores were closed for the first seven weeks of year. Like other retailers we also suffered with on-going supply chain challenges, particularly in the run-up to peak trade, and experienced a significant increase in freight costs which compounded wider inflationary pressures across operations.
“However, we continued to invest to drive future growth with the development of our new website platform which launched in March 2022, as well as investing in our store estate with the opening of seven new stores. This past year also saw the launch of our new Workshop channel with both online and store workshops adding a new revenue stream for the business, with exciting opportunities to grow this going forwards.”
He added: “Our performance underlines the strength and breadth of our offer and the truly cohesive multichannel model we have built over recent years. It is also a testament to our exceptional colleagues who continue to inspire and provide fantastic service to our customers. I would like to thank all our colleagues for their continued hard work and passion.
“As we emerge from the pandemic the business is incredibly well placed to build on the excellent performance in FY22 with multiple new initiatives including the new website, Workshop channel, further new stores and a subscription model which launches in the coming year. However, we are conscious that the year ahead will be very challenging, particularly given the significant inflationary pressures on our customers and we are starting to see this impact on market demand in the early part of FY23.”
