Berghaus' sales grew by a high single digit to the equivalent of more than $150 million last year, including licenses, according to officials of its parent company, Pentland Group. Most of the growth continued to take place outside the U.K., whose share of the global turnover has declined from 80 to about 60 percent in the last few years.
Besides its growing distribution in Japan and other Asian countries, where it now has some 300 single-brand shops, the brand is benefiting from the development of targeted ranges of outdoor clothing for Asian and central European markets. The new subsidiary in Munich is performing well.
In the U.K., Berghaus maintained its leading share of the outdoor market, according to Pentland, but company officials insisted that it is not getting any direct or indirect benefits in its relations with Blacks Leisure Group from the fact that Pentland owns 57 percent of JD Sports Fashion, which bought Blacks earlier this year.
According to an article in the Financial Times, the management of Berghaus, led by Richard Cotter since 2006, would like to take its annual turnover up to a level of $500 million within 10 years, mostly through further expansion overseas, particularly in Asia and South America. New markets for Berghaus are Australia, New Zealand, Chile, Ecuador and Bolivia. Finland will follow next year. South Africa and Turkey are on the radar screen.
Meanwhile, Pentland Group has reported strong overall results for the year ended last Dec. 31. Total revenues went up by 17 percent to £1.523 billion (€1.920bn-$2.359bn). Pre-tax profit rose by 17.5 percent to £114 million (€143.7m-$176.5m). The bottom line improved in spite of an 8.2 percent decline in operating profits to £101 million (€138m-$171m), which the company put down to investments for future growth. It is investing in people, infrastructure and systems. Its SAP platform has been extended worldwide, and the company is now working on its upgrade.
The results were partly boosted by those of JD Sports Fashion, whose retail turnover rose by 18 percent to £1.035 billion (€1.305bn-$1.603bn). Adding its own wholesale brands, JD's revenues grew by 19.9 percent to £1.059 billion (€1.335bn-$1.640bn), but its net profit declined by 11.7 percent to £49.4 million (€62.3m-$76.5m).
Pentland also has a diversified portfolio of brands in sports, outdoor and fashion. It owns Speedo, Ellesse, Berghaus, Boxfresh, Mitre, Red or Dead, and others. It also licenses Lacoste and Ted Baker footwear globally, and Kickers in the U.K.
Revenues from other businesses besides JD rose by 15 percent to a total of £497 million (€626.5m-$769.7m), mostly fueled by good performances for Speedo, Lacoste footwear and Ted Baker footwear. Besides Berghaus, these other business also include brands such as Ellesse and Mitre (more in two other publications of ours, SGI Europe and Shoe Intelligence).