Weird Fish, a UK-based lifestyle brand, reports significant profit growth in 2023 despite a dip in revenue.
- The company saw an 80% increase in EBITA to £2.6m and a 14% rise in gross profit to £21.3m.
- This growth is attributed to improved sell-through rates and better coordinated marketing campaigns reducing discounting.
- Plans are underway to expand their retail presence with the addition of new stores across the UK.
- Focus is on enhancing profitability through digital capabilities, partnerships, and product range expansion.
The British lifestyle brand Weird Fish has announced a remarkable increase in profitability for the year ending 31 December 2023, even as its revenue experienced a slight decline. Earnings before interest, taxes, and amortization (EBITA) surged by 80% to £2.6 million, while gross profit increased by 14% to £21.3 million. Despite a 4% decrease in revenue, which stood at £38 million, the brand focused on enhancing profitability by improving sell-through rates, leading to better overall financial performance.
The company credits its profitability improvement to strategic marketing efforts across various channels, which successfully reduced the need for discounting and increased the average basket size. By investing in both online and physical store experiences, Weird Fish managed to boost its gross margin by 9%, reaching 56% in 2023. According to their latest trading update, the current financial year’s performance aligns with management’s expectations, with further profitability improvements anticipated.
Chief Executive Officer David Butler has outlined a strategic vision for 2025, which includes bolstering digital capabilities, forming new partnerships and sponsorships, and expanding the retail store footprint. Weird Fish plans to add five new stores by the end of the current financial year and an additional seven by 2025, bringing the total to 29 stores, primarily located in market towns and coastal regions.
Since David Butler assumed leadership in December 2023, the company’s store count will have doubled, reflecting a focused effort on creating a more profitable business model. Butler has emphasized the brand’s development trajectory, stating, “The business is now on a positive growth trajectory and we’re confident of further expansion this year and next as we enhance our product ranges and drive margin and customer engagement through our improved multi-channel presence.”
Weird Fish is set to continue growing its presence by developing three key collections: Outdoor, Heritage, and the newly launched WF collection. The brand’s partnerships with well-known organisations such as the Royal Society for the Protection of Birds (RSPB) and the Caravan Club will be augmented by further ambassador collaborations to enhance customer engagement.
Weird Fish’s strategic focus on profitability and expansion through enhanced digital and retail capabilities positions it strongly for future growth.
