Expansion, both at home and abroad, sees Rapha's profits fall by 16.5 per cent, but sales and turnover are up by more than a third
High-end clothing brand Rapha saw its sales and turnover increase by over 30 per cent in the year ending February 1, 2015, but saw profits fallling by 16.5 per cent as it plunged money into global expansion and a new HQ.
Its growth in recent years has required the company to depart its Kentish Town base in favour of a larger premises in the booming Kings Cross area, just yards away from the location of the Rapha Super Cross series in November.
While pre-tax profits fell to £507, 888, Rapha has been expanding its Rapha Cycling Club shops, which combines coffee with merchandise, with plans to open a second store in London’s Spitalfields in November, as well as ones in Manchester and Tokyo.
The USA has also been a key expansion ground, with the Los Angeles Cycle Club launching in November, with further clubs planned across the country.
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Simon Mottram, Rapha founder and CEO, said: “Rapha has had another fantastic year and we continue to position ourselves for further growth in all our global markets.
“Rapha was set up to connect lovers of cycling with the sport, and we’ve made huge strides this year strengthening this relationship with our customers. Our expanded Cycle Club retail network, our newly launched Cycling (members) Club, and our travel business all connect us, and keep us relevant for our customers.
“Since the year end we’ve continued our focus on the opportunity in North America, the largest road cycling market in the world.
“We’ve seen a great response to our Cycle Club stores in San Francisco, New York, as well as the pop up clubs in Denver and Chicago, and we believe there is huge potential for further growth for Rapha in the US, the world’s largest cycling market.
“The upcoming opening of our Los Angeles Cycle Club, and the recent appointment of Brendan Quirk as President for North America, illustrates our commitment to fulfilling this potential.”