Bestseller profits up 8% to £594m
However, sales from retail stores continued to grow in line with recent years
Danish fashion brand Bestseller has reported an 8% increase in profits to DKK 5.3bn (£594m) for the year to 31 July 2024, despite a 4% drop in revenue to DKK 35.6bn (£3.99bn).
The group stated that profitability primarily improved due to normalisation and efficiency gains in the company’s logistics operations.
Meanwhile, the decline in revenue was driven by decreasing online sales at both partners and Bestseller’s own online channels. However, sales from retail stores continued to grow in line with recent years.
In 2023-24, sales across retail channels increased by 5%, and the company opened more than 330 new stores, bringing the total number of stores to over 2,800. This included expanding existing stores as well as moving stores to bigger and more suitable locations.
Looking ahead, the company expects to “intensify its focus on retail stores and expansion in the coming years”.
Anders Holch Povlsen, CEO and owner of Bestseller, said: “We are satisfied that we were able to deliver a strong profit but humbly acknowledge that top-line growth will be required going forward. Our strength as a multichannel fashion company, combined with the hard work put in by all colleagues, provided the ability to deliver results under difficult circumstances. This gives the opportunity to invest in building an even stronger foundation, which we are continuously determined to do.
“In recent years, we have seen strong, positive progress in our retail stores. We have focused on creating the best experiences for shoppers by optimising our collections and opening bigger stores in the best locations. In the coming years, we will ambitiously expand our retail presence.”
