British casualwear brand Cotton Traders has reported a decrease in both turnover and profit for the 2023 financial year, highlighting the impact of economic challenges.
- Operating profit fell by 9.9% to £9.8 million, compared to the previous year, marking a significant decline in performance.
- Total turnover experienced a 1.7% drop, reaching £109.4 million, as the company navigated through a challenging market environment.
- Despite the dip in overall performance, online sales saw a significant increase, with womenswear being a standout category.
- The company plans to focus on expanding its marketplace strategy, leveraging new platforms for growth.
In the 2023 financial year, Cotton Traders reported an operating profit of £9.8 million, which represents a 9.9% decline from 2022’s figures. This reduction reflects broader economic difficulties, such as inflation and the cost of living crisis, contributing to weakened consumer confidence.
The company’s turnover decreased by 1.7%, amounting to £109.4 million. This drop is attributed to the adverse economic conditions impacting consumer spending patterns across the retail sector. Despite these setbacks, Cotton Traders managed to bolster its digital presence, as evidenced by a 6.2% rise in e-commerce sales and an 11.1% increase in mobile app sales.
Womenswear emerged as a particularly strong segment, with overall sales rising by 10%. The success was driven by significant gains in woven tops, which saw a 13% increase, and a 7% rise in women’s trousers. In contrast, the menswear category maintained steady performance with notable increases in shirts and knitwear sales by 20% and 11%, respectively.
Physical retail also displayed resilience with the opening of 10 new stores across the region, resulting in a 0.6% year-on-year growth in in-store sales. This contributed to 21.5% of total sales, slightly higher than the previous year. Of the 87 retail locations, 93% proved profitable.
CEO Nick Hamblin expressed optimism about the future, mentioning the company’s strategic focus on marketplace growth. He acknowledged the loyalty of Cotton Traders’ customer base amid economic uncertainties and highlighted successful partnerships with platforms like Debenhams.com and Freemans.com as key elements of this strategy.
Cotton Traders aims to navigate economic challenges by enhancing digital engagement and expanding its marketplace strategy.
