PrettyLittleThing's sales up, profits dip in latest yearly results
A slender rise in annual sales for fashion brand PrettyLittleThing was driven by positive performances in its core UK and US regions in the 12 months to 28 February, its latest accounts filed at Companies House show.
However, mainland Europe and Rest of World sales dipped and the Boohoo Group-owned brand said it had to endure a rise in return rates, denting the bottom line.
The brand posted revenues of £712.2 million, up from the £710.1 million recorded in the prior year. Sales in the UK increased 6.4% and in the US by a slim 0.1%. But they fell 13.8% in mainland Europe and by 21.3% in the RoW region.
Pre-tax profits fell to £75.1 million from £98.7 million over the same period, also hurt by £11.6 million of costs related to the £125 million automation of its Sheffield warehouse.
A statement by the board said: “Revenues in the UK and USA have remained resilient despite the easing of lockdown restrictions in the second half of the financial year, and despite returns rates in the second half of the year returning to pre-Covid-19 levels.
That reflects patterns seen at the wider parent company, although it’s interesting to see these specific PLT figures as Boohoo does’t break out individual brands when reporting sales and profits.
PrettyLittleThing added: “The market for online fashion is forecast to continue to grow in the medium term. The current economic climate of high inflation and cost pressures on consumers may impact demand in the short term. Customers throughout the world are expected to continue to seek quality product that represent value for money.
“Our strategy will be to use a combination of marketing to drive new customer acquisition and promotions to secure sales, all the while supported by the most convenient delivery and return options and high level of customer service.
“We will continue to broaden the range of products and to refine the online shopping experience with the latest technologies to ensure we provide the most user-friendly website possible”.
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