Ann Summers sees operating profit up 129% despite revenue decline
British lingerie and erotic lifestyle retailer Ann Summers said it had another year of “solid” trading in the period ended 25 June 2016 with operating profit growing by 129% on the previous year.
The business said operating profit for the year was £0.8m, and the improvement was achieved despite turnover decreasing from £105m to £102m. Profit after tax was flat at £0.9m.
In the period Ann Summers focused on building its foundations for growth with a store refurbishment programme and the launch of a new e-commerce platform at the centre of the strategy.
The company’s 4 new stores and 5 refurbished locations outperformed the rest of the store estate during the 12 months, so the company is planning to refit the remainder of the core portfolio over the next two to three years.
The launch of a new e-commerce platform with Demandware delivered a better online shopping experience and helped drive stronger customer conversion.
The company also grew its wholesale business with both expanded and new partnerships, including an online House of Fraser concession. Other wholesale partners include Asos and Shop Direct, which said that Ann Summers continues to rank within their top 3 lingerie brands.
In the next 12 months the business plans to overhaul its core IT infrastructure to ensure the delivery of a better shopping experience. Product innovation and wholesale growth will continue to be key priorities.
Ann Summers is a British retailer specialising in lingerie, erotic lifestyle and other related accessories. It trades from more than 140 high street stores across the UK and Ireland.
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