Sales and profits at the Altrincham-based clothing brand have experienced a slight decline, despite facing the challenges posed by the cost-of-living crisis.
In the year leading up to December 31, 2023, the Altrincham-based clothing brand reported a turnover of £109.525 million, compared to £111.444 million in the previous year. The pre-tax profits were recorded at £8.422 million, down from £10.396 million in 2022. The previous year included an extra week of trading, which had contributed to its record financial performance.
The company attributes its steady performance to a robust, digital-oriented marketing strategy. Significant investment was made into maintaining brand awareness, which currently stands at 95%. Additionally, there’s been a 2.6% year-over-year increase in online penetration. This growth was driven by new customer acquisitions through digital channels and a shift of traditional customers to online shopping. Moreover, website sales witnessed a 6.2% rise, and app-based sales saw an 11.1% increase compared to 2022.
Throughout 2023, the brand extended its collaboration with TV personality Will Mellor and introduced partnerships with broadcaster Alex Jones and ‘A Place in the Sun’ presenter Jasmine Harman. These alliances have played a crucial role in reaching a younger demographic, ensuring the brand’s continued relevance.
The menswear category remained stable, with notable sales in shirts and knitwear, which saw increases of 20% and 11% respectively. Meanwhile, the womenswear segment performed exceptionally well, showing a 10% year-over-year increase. This growth was spurred by higher purchases of women’s trousers and woven tops, along with significant expansions in underwear and loungewear ranges.
Physical retail also experienced a resurgence, with the company investing in its stores. Sales from physical locations accounted for 21.5% of total sales, with in-store orders growing by 11.4% year-over-year. As part of this investment strategy, ten new stores were opened, and several existing stores were either relocated or refurbished, leading to 81 out of 93 stores delivering profitable outcomes.
Nick Hamblin, CEO, expressed his satisfaction with the performance, despite the low consumer confidence due to the economic challenges. He emphasised the importance of customer loyalty and the brand’s competitive pricing. ‘It’s promising to see our investment into physical stores paying dividends with an uplift not only in sales year-on-year, but also orders in-store,’ he remarked. Hamblin also highlighted the success of their growth strategy, including a full year of trading on Debenhams.com and a soft launch on Freemans.com.
The brand remains optimistic as it looks forward to implementing its marketplace growth strategy in the coming year, aiming to leverage its successful online and in-store innovations.