Mountain Warehouse Expands Footprint in America with EMS Acquisition

Starting with a single location in Swindon, Mountain Warehouse, the popular high street outdoor clothing retailer, is set to enhance its presence in the American market following the acquisition of Eastern Mountain Sports (EMS), a US competitor that recently faced financial challenges.

Mark Neale, the CEO and founder of Mountain Warehouse, has finalized the purchase of EMS for £7.6 million, a move that will preserve 100 jobs. Neale expressed enthusiasm about the acquisition, stating, «I have been following the company for a long time. EMS is an iconic brand, and this acquisition will provide a solid foothold for Mountain Warehouse in the USA.»

He added, «The US is the largest outdoor market globally, and we are committed to building a global business that includes a strong presence in the US.»

Mountain Warehouse has been active in North America for over a decade, operating more than 50 stores that collectively contribute around £65 million to the company’s annual revenue.

Mark Neale, chief executive of Mountain Warehouse, views the EMS deal as a major opportunity in the US market.

Founded in 1997 by Neale, who previously ran businesses in toys and greeting cards, Mountain Warehouse has steadily risen to dominate Britain’s outdoor retail sector, surpassing established outfits like Millets and Blacks, particularly among middle-aged consumers who enjoy outdoor activities.

Mark Neale, originally from Ebbw Vale and raised in Abergavenny, is now a multimillionaire with a reported net worth of £199 million, according to the latest Sunday Times Rich List. He has a degree in physics from Oxford University and is known as a serial entrepreneur. Following a few unsuccessful ventures, he found success with Mountain Warehouse.

The retailer employs over 3,700 staff and recently reported record revenue of £386 million for the fiscal year ending February 25, marking a 4% increase year-on-year and the highest in its 27-year history. Pre-tax profits reached £26.2 million, with nearly one-third of revenues now coming from its online platforms, which include a marketplace featuring over 320 third-party brands selling outdoor products.

Mountain Warehouse has also been broadening its international operations, currently operating 370 stores across nine countries, including the US, Germany, the Netherlands, and Australia, with plans to add an additional 50 stores in 2024.

EPS was established in 1967 with its first location in Wellesley, Massachusetts, and has partnered with leading brands like The North Face, Smartwool, and Oboz. The retailer has faced difficulties, filing for Chapter 11 protection three times due to liquidity issues, with its most recent ownership change occurring in 2022 when GoDigital Media purchased it from Frasers Group.

Neale anticipates that Mountain Warehouse’s expertise in the outdoor retail market will revitalize EMS. He noted, «EMS has not been properly supported by people who understand the outdoor sector. We bring a profound knowledge of this market and aim to stabilize and then expand it again. They had over 100 stores at one point, and we certainly want to help them return to that number.»

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