The Range losses widen to £11.7m in FY23
This is despite revenues rising 26% on pre-pandemic levels, with like-for-like sales jumping 17.3% during the financial year
The Range has reported that losses have widened to £11.7m, falling more than 10% in the financial year ended 29 January 2023.
Gross profit margins also dropped from 33% to 31.9% in the year, which the retailer attributed to higher costs of goods purchased and freight costs, as well as more price discounting in stores and online.
This is despite revenues rising 26% on pre-pandemic levels, with like-for-like sales jumping 17.3% during the financial year.
The retailer also maintains that the year to January 2023 represented a return to “a more stable” period of trading, following heightened demand during the pandemic.
During the current financial year, The Range has seen sales return to growth, with like-for-like gross profits up over 4%.
As a result, the group expects profits to exceed pre-pandemic levels by the end of FY24.
Jamie Messham, CFO of The Range, said: “Sales vs pre-pandemic levels are very encouraging and reflective of a loyal and diverse customer base. The business enters the last three months of the year, full of optimism and ready to deliver a strong Christmas offering in what is traditionally our busiest trading period of the year.”
Alex Simpkin, chief executive of The Range, said: “The FY23 results are reflective of a period that ended nine months ago, and during which, significant operational challenges arose for many in the retail sector; primarily related to the fallout from Covid and the Ukrainian conflict.
“Since the period ended, The Range has invested in constructing a new 1.2 million sq ft distribution centre in Stowmarket, with completion taking place on the 6th November 2023. This will provide the business with a best-in-class facility to service its distribution and capacity requirements and meet its ambitious expansion plans.”
The Range recently acquired the Wilko brand after falling into administration, and has relaunched it online. The retailer has also introduced Wilko products in its stores.
