Reiss announce profits thanks to ‘the Kate effect’

Submitted by on Friday, 30 December 2011 | No Comment

The ‘Kate effect’ has swept the nation this year. Every time the Duchess of Cambridge appears in a highstreet label, the item sells out in double quick time.

The likes of Warehouse, French Connection, LK Bennett, Zara, Topshop and Reiss have all benefited from the ‘Kate effect’ this year after she was spotted wearing their clothing on a number of occasions. The Duchess has also made no secret of her love for Reiss and LK Bennett as she has been spotted in these brands time after time, even choosing them for official Royal engagement photographs and appearances.

Before Kate was pictured wearing their items, Reiss were suffering a bit of a downfall in profits but things have completely turned around as they have now emerged as one of the most successful companies on the British highstreet. Sales have increased from £77.7m to £87.6m while profits have almost doubled from £4.3m to £8.5m and a pre-tax loss of £2.1m was turned into a profit of a staggering £3.64m.

Although Reiss officials claim that the turnaround is down to ‘tighter control of costs,’ we expect that the ‘Kate effect’ helped them out hugely. Kate was spotted earlier in the year wearing the company’s Nanette Dress on her trip to Canada and the popular Shola dress, worn at a meeting with the Obama’s, was in such huge demand that Reiss put it back into rotation.

As Kate’s popularity rises in 2012, we’re keen to see what other Highstreet brands she will be spotted in. We expect that every Highstreet shop is hoping for the Duchess to step out in their clothing.

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