Lounge Underwear’s profits slipped in its last financial year as it branched into physical retail, opening four UK stores over the past year.
The underwear and apparel retailer saw pre-tax profit plummet 33% to £5.5m despite sales jumping 6% to almost £68m. Active customers increased 20% across all of its markets, with significant growth across mainland Europe and orders up 10%.
It comes in a year where Lounge Underwear opened its first permanent physical stores. The brand launched its first shop at Westfield White City, London in September last year, after 7 years of trading solely online.
It has since opened stores in Manchester’s Trafford Centre, Trinity Leeds and Cabot Circus in Bristol, and vowed last July to open 8 stores within a year.
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Lounge Underwear also plans to expand its store portfolio internationally with the opening of its first shop in Germany in June.
CEO Daniel Marsden said: “A focus for us over this period has been creating an omnichannel experience where people can shop online as well as in real life.
“Our retail stores aim to be more of a brand experience piece just as much as a revenue and profit function, and is a vision which will continue to be rolled out in the next financial year.”
“As we look ahead at the next 12 months we are ambitious and positive around the opportunities for growth.”
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