Profit figures reveal highs and lows of high street

Pretax profits at the main Irish arm of international clothing giant Zara more than doubled last year to €6.2 million.

This followed revenue at Spanish-owned Za Clothing Ireland increasing by 14 per cent from €50 million to €57 million in the 12 months to the end of January 31st last.

The accounts recently filed with the Companies Office show that profits increased by 146 per cent from€2.52 million to €6.2 million last year.

Numbers employed by the firm last year increased from 310 to 316 with staff costs declining marginally from €9.6 million to €9.5 million.

The profit takes account of non-cash depreciation costs totalling €3.4 million with operating leases on property totalling €5.79 million.

The figures show that the firm’s shareholder funds totalled €17.8 million, which included cash increasing from €995,000 to €2.1 million. The the firm’s gross profit increased from €27.9 million to €31.8 million. Its selling and distribution costs last year totalled €24.67 million.

According to the directors’ report, they “plan to open further stores as soon as suitable opportunities arise”.

Hilfiger's declines
In contrast, the Irish arm of another well-known fashion brand, Tommy Hilfiger, saw its pretax profits declining by 72 per cent from €417,211 to €114,185 last year.

New figures show that Hilfiger Stores Ireland recorded the sharp drop in profits despite increasing revenue as a result of the firm's expansion, with two new outlets opening.

The accounts show that the firm’s gross profit increased by 19.5 per cent from €5.2 million to €6.25 million in the 12 months to the end of December last year.

Numbers employed by the firm last year increased from 64 to 100 with staff costs increasing from €1.1 million to €1.58 million.

According to the directors’ report, “the retail sector has suffered significantly in the downturn, but the company has continued to be profitable in the current period. One new outlet and a concession were brought on stream during the period, which added to turnover.”

Shareholder funds stood at €899,920 last year. The firm’s cash during the year rose from €580,118 to €699,440 last year.