The Perfume Shop profits fall despite rise in revenues
Looking ahead, the group’s directors expect the UK retail environment to remain ‘challenging and strongly competitive in 2024’
The Perfume Shop has reported a fall in profits from £23.7m to £21.4m despite a 4.6% rise in revenues to £302.4m for the 52-week period ending 30 December 2023.
Its profit after tax also dipped to £15.4m. The group stated that consumer sentiment remains subdued as inflationary pressures and high interest rates continue to impact disposable income, whilst at the same time businesses are seeing significant increases in their cost base driven by large increases in wage costs and business rates.
However, the group’s comparable sales saw an increase of 3.3% and a strong growth in its stores and online.
The company’s loyalty programme has also continued to grow, with an increase in member gross sales participation and total number of members.
Looking ahead, the group’s directors expect the UK retail environment to remain “challenging and strongly competitive in 2024”.
In response, The Perfume Shop has devised “comprehensive strategies” to effectively engage with customers across online and offline channels.
It has also implemented “proactive measures” to counter inflationary impacts on both consumers and the company’s operating margins.
Overall the company stated that it is “well positioned to grow successfully in 2024 and beyond”.
