Seasalt’s profits rise thanks to explosion of retail openings

Cornish fashion brand, Seasalt, has revealed its annual pre-tax profit reached £6.8 million, compared to £470,681 the year prior, after it added a slew of brick-and-mortar shops to the British high street.

Gross profit margin increased from 51.1% to 56.2%, while turnover rose by 12%to £132.6 million.

Seasalt said its product margins recovered in the latest year thanks to improvements in sourcing and inbound costs falling "back to more normal levels".

The retailer has grown rapidly over the past ten years. In November, it announced that it would be opening its first stand-alone US store, bringing its total number of brick-and-mortar stores to 73.

The group continued to open new Seasalt stores in the UK and Ireland throughout 2023, including Meadowhall, Aberdeen, Trentham, Malvern, a pop-up store in Plymouth and a third Irish store in Kenmare.

Earlier this year, Seasalt told TheIndustry.fashion: "UK growth is a key priority for Seasalt in 2024. In 2023 we opened 7 new stores in the UK, Ireland and New Zealand as part of our commitment to bricks and mortar, and anticipate opening new stores in the UK, and in other countries, throughout the year ahead."

The clothing chain's  "record-breaking" year saw it achieve a 10% increase across its store portfolio. However, the company’s online business suffered from the increase in store openings. The shop and online channels represent 79% of group revenue, with stores representing 49% and online 51% respectively.

Paul Hayes, CEO of Seasalt, said: "Sales have been very strong throughout the trading period in review, and we’re delighted to build on the ongoing success of recent years, in the face of obvious external challenges and economic uncertainty. In fact, over the last five years, the Group has more than doubled its turnover to £132.6m. Last year was a tough year for retail businesses, but we weathered the impact to evidence record-breaking revenue growth for the business in these statutory accounts.

"We’ve now got our focus firmly set on the future as the year ahead is a significant one for us, with the launch of our first Seasalt stores in North America and continued expansion in our partner channels, at home and internationally. We have every confidence that we will realise our ambitious growth plans if not exceed expectations."