Danish fashion company Bestseller reports an 8% profit rise amidst revenue drop.
- Total revenue declined by 4% year-over-year, primarily due to online sales decreases.
- Efficiency in logistics contributed to a rise in EBIT to DKK 5.3bn (£590m).
- Over 330 new retail stores were opened, with a 5% sales increase in retail channels.
- Sustainable material investments to be enhanced, including organic cotton and recycled polyester.
Danish fashion group Bestseller has reported an 8% increase in profits, despite a notable decline in top-line revenues. The company’s revenue fell by 4% compared to the previous year, amounting to DKK 35.6 billion (£3.99 billion). This decline was primarily driven by a decrease in online sales across both partner and proprietary channels, which overshadowed the growth seen in physical retail outlets.
Nevertheless, the group achieved significant efficiency gains in its logistics operations, leading to earnings before interest and tax (EBIT) reaching DKK 5.3 billion (£590 million). This improvement highlights the effectiveness of strategic operational adjustments within the company’s logistics framework.
Bestseller’s strategic initiatives included the opening of more than 330 new retail stores over the year, resulting in a total of over 2,800 locations worldwide. This expansion contributed to a 5% increase in retail channel sales, reinforcing the company’s focus on enhancing the shopping experience through optimised collections and strategic store locations.
Looking ahead, Bestseller plans to intensify its emphasis on sustainable practices by increasing investments in products made from organic cotton and recycled polyester. This commitment to sustainability aligns with broader industry trends and reflects the company’s proactive approach to environmental responsibility.
CEO Anders Holch Povlsen expressed satisfaction with the company’s profit outcomes whilst acknowledging the necessity for future top-line growth. His statement underscores the company’s balanced focus on profit stability and future expansion. Povlsen’s recent acquisition of a majority stake in Topshop further exemplifies his strategic vision for growth.
Bestseller Group’s recent financial outcomes highlight its resilient profit strategies amidst challenging revenue conditions.
