Ann Summers' fiscal year report reveals opportunity for store expansion

British lingerie and sex toy retailer, Ann Summers, is planning to boost its number of stores in the UK and Ireland from 88 to 93 in 2024 after its fiscal year report reveals growing in-store footfall.

The company has published its financial report for the ending 25 June 2022, the first since the former CEO Jacqueline Gold passed away earlier this year.

Turnover increased from £93.2 million to £100.1 million during the period, with the company noting its stores performed strongly, exceeding its expectations. This is also down to specific business strategies, such as enhanced digital customer experience and an increased range of diverse skin tones.

Retail sales were up 7.6% compared to 2020 and 5.4% above pre-pandemic figures. Gross profit sat at £60 million, up from £50.9 million the year prior.

Wholesale, which remains the company's smallest trading channel, saw 21% growth in 2021 compared to the year prior. This was driven by a strong performance from existing and new wholesale partners, who are largely online retailers.

Operating expenses of £84.2 million were £32.0 million higher than the prior year.

Despite its successes, Ann Summers’ operating profit for the year was down to £1.2 million, compared with £3.5 million the year prior. The company blamed the Covid-19 pandemic and the war in Ukraine and Russia for this dip.

Maria Hollins, CEO of Ann Summers, commented: "Whilst global supply chain issues, rising costs, the Russia/Ukraine conflict, inflation at an all-time high, and more recently the US$ exchange rate have all undoubtedly had an impact on profitability & consumer sentiment, this unprecedented period has also presented us with new strategic opportunities for growth.

"Our focus for 2022/23 and beyond is therefore to invest in the business to ensure we can maximise these opportunities in the future"