Go Outdoors reports a return to profits as margins rise

JD Sports-owned Go Outdoors has filed its latest accounts and they show that the company returned to profit in the year to 1 February.

The company, which operates stores and websites under its own name as well as Go Outdoors Express, Taylor’s and Fishing Republic, said that it made a profit before tax this time of £9.7 million compared to a loss before tax of £1.5 million a year earlier.

That was despite the company’s turnover having fallen year on year by 1%, although that wasn’t quite such a problem as it sounded. The previous year had been 53 weeks so with the latest one being only 52 weeks, a 1% fall in its revenue actually looks quite good.

Revenue when taken as a 52-week comparison managed to rise year on year, driven by an increase in net space across the store estate. Store numbers actually rose to 126 from 99. And as well as opening new stores, it relocated another to make it the largest outdoor store in Europe. That store’s in York and last month the company said that a year on from its debut, this award-winning location had become the brand’s best-performing flagship while also acting as a hub for the people of York, hosting community events and product launches.

Back with those results, the company’s underlying gross margins were strong and were the main reason for the business’s return to profitability. They increased healthily to 45.7% from 41% due to the better management of inventory, while sea freight costs were much improved.

But not all of its figures were positive as it said it saw a contraction in online sales during the period. Although they’re above pre-pandemic levels, they’ve been partially offset by the positive sales performance within physical stores.

That said, overall the period saw strong demand for the company’s product range as consumers embraced the benefits of spending time outdoors.