Spanish fashion giant's Grafton St move pays off as profits triple
Fashion giant Massimo Dutti's move into one of the country's most high profile retail sites is paying off handsomely.
The firm opened its second Irish store at 65/66 Grafton Street in Dublin on January 30 last year. The premises previously housed HMV's flagship Irish operation.
Previously, Massimo Dutti's only Irish outlet was at the Dundrum Town Centre where it has operated since 2005.
New accounts show that the Grafton Street opening contributed to pre-tax profits at Massimo Dutti Ireland increasing three-fold to €686,000.
Revenues almost doubled from €4.49m to €8.15m in the 12 months to the end of January 31 of this year. The directors of the firm state that they plan to open further stores as soon as suitable opportunities arise.
The opening of the new outlet over three storeys contributed to the firm's operating lease costs increasing from €947,000 to €1.3m last year.
Numbers employed rose from 23 to 41 with staff costs more than doubling to €1.15m. The firm did not pay a dividend last year after paying a dividend of €900,000 in the prior year.
The accounts show that operating profits increased by 222pc - from €219,000 to €705,000 - while net interest payments of €19,000 reduced the firm's profits to €686,000. The profits last year take account of non-cash depreciation costs of €351,000.
The firm's accumulated profits stood at €846,000. Shareholder funds of €2.34m included €788,000 in cash.
Massimo Dutti is a sister firm of Zara and Pull and Bear and all are controlled by the world's largest clothing group, the Spanish-based Inditex.
Inditex has reported an 8pc increase in revenues to €18.1bn for last year.
Massimo Dutti fashions for men and women are modelled on elegant, classic and studied designs for daily and formal clothes. It is however more expensive than the rest of the stores in the Inditex group.