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Ann Summers swings to loss despite rise in revenues

By Prachi Singh

Jan 18, 2019

Report

For the year to June 30, 2018, Ann Summers, retailer and wholesales of lingerie, apparel, adult toys and related products, reported revenue increase to 110 million pounds compared to 109 million pounds last year. However, it said in the filing with the Companies House UK that loss for the year was 3.1 million pounds compared to profit of 2.5 million pounds last year.

Commenting on “the difficult year”, the company’s CEO Jacqueline Gold CBE said in a statement: “We also reported operating loss of 3.2 million pounds, predominantly due to significant investments in new IT infrastructure, key flagship stores, and a brand re-launch, which are long-term strategy to grow business, as well as fully providing for losses on a few stores that will form part of out future portfolio. There has also been insurmountable government-led cost burdens and negative influences, leading to fragile consumer confidence, compounded by a battering from weather extremes.”

During the year under review, the company invested in research by assigning the task to marketing agency J. Walter Thompson to reinvent the brand. The company also continued to roll out the store refurbishment plan and opened two stores along with refitting of four stores including flagship stores in London’s Oxford Street, Manchester, and Birmingham. In AW17, the company also launched Lipsy lingerie through its own retail channels and wholesale partners – Asos, Lipsy and Simply Be. Additionally, Ann Summers partnered with Nordstrom as a part of its international expansion strategy.

“Whilst we know we face further challenging times ahead, with our new brand purpose and vision for the future, the re-branding work we are doing is already impacting everything we do as a brand and how we communicate with our customer. However, this is just the beginning of our new brand journey, and I remain hugely optimistic for the long-term future success and growth of our business,” Gold added.

At the end of the year, Ann Summers had operated 112 stores in the UK compared to 125 last year, with a further four stores in EIRE through its subsidiary Ann Summers Ireland (Retail) Ltd.

Picture:Facebook/Ann Summers

Ann Summers