Cold winds of recession fail to dampen profits at Monsoon

MONSOON ACCESSORIZE widened its pretax profits from its Irish stores to €5.6 million in the year to the end of August 2010, despite a fall in turnover.

Revenue from outlets of ladies’ fashion chain Monsoon and its sister retailer Accessorize fell almost 15 per cent to €30.8 million compared to the previous 12-month period, accounts filed at the Companies Office show.

However, a fall of €3.5 million in the cost of sales and €5.4 million in administrative expenses more than offset the effect of slower sales, boosting profits.

Pretax profits at Monsoon Accessorize Ireland Ltd, which owns 21 shops in the State, increased 162 per cent, while the retained profit of €4.57 million was up 135 per cent on the previous year.

In a note accompanying the accounts, the directors said they were focused on managing the company’s costs while continuing to invest in the brands through improved product ranges and marketing.

“Trading conditions remain tough and the economic outlook in Ireland uncertain,” the directors state.

In the year ahead conditions for clothing retailers would “continue to be tough and will bring short-term volatility to sales”.

The average number of people employed by the retailer fell from 193 to 180 during the year. However, staff costs increased slightly to €5.8 million.

The company paid an interim dividend of €454,000 during the period to its ultimate parent company, Balmain Ltd, which is incorporated in the British Virgin Islands.

Monsoon is owned by its founder, fashion entrepreneur Peter Simon who ran a stall selling boho clothes on London’s Portobello Road before opening the first Monsoon in Knightsbridge in 1973. He opened the first Accessorize in Covent Garden in 1984.

The company, which now has more than 1,000 stores worldwide, was quoted publicly from 1998 until 2007, when Mr Simon and his family returned the company to private ownership – a move which pre-empted a period of higher profits.

Monsoon’s ladieswear ranges largely focus on the traditionally feminine, with floral prints, embellished cardigans and ribboned dresses in jewel colours acting as staples in its collections from year to year.

Accessorize stores usually operate either in close proximity to Monsoon outlets or as part of the same premises.

The company also sells beach wear, children’s wear and giftwares.