PrettyLittleThing records profit dip as returns climb – Latest Retail Technology News From Across The Globe – Charged – Charged Retail
PrettyLittleThing has posted largely flat sales in its most recent full-year report as consumer demand continues to hamper profits.
The fast fashion retailer‘s revenue came in at £712.3 million in the 12 months to 28 February, a rise of 0.3% year-on-year.
Sales were deemed as resilient in the UK and US against a strong prior year performance when lockdowns saw a consumers flocked to online retailers.
Sales climbed 6.4% to £391.8 million in the UK, while sales in the US edged 0.1% higher to £210.1 million.
Its European operation saw sales drop by 13.8% and 21.3% respectively.
The company said both regions were impacted by subdued consumer demand following the end of lockdown restrictions, as well as increasing returns rates.
“We continue to refine the mix of marketing expenditure and price and delivery promotions to optimise profitability and sales growth,” the company said in a statement.
Pretax profit narrowed to £75.1 million from £99 million a year prior, which was impacted by £11.6 million of exceptional costs linked to the automation of its Sheffield warehouse.
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Profit for the year tumbled to £55.2 million from £78 million.
“As lockdown restrictions have eased we have continued to see good levels of demand with a shift in consumer demand back into more going out fashion, compared with more casual products purchased during lockdown,” the company said.
“While demand has remained strong we have also seen an increase in returns levels back to pre-pandemic levels.”
Looking forward, the fast fashion firm said its 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”.
It continued: “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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