Lipsy posts decline in turnover, profit

By

Cajsa Lykke Carlson

Published
Jul 19, 2016

Lipsy, the young British fashion brand, has reported its results for the financial year ended January 30, 2016.

Turnover in the period was down 4.2% to £68.9m from £71.9m the previous year, and profit fell from £4.6m to £4.3m. The retailer said it performed in line with expectations despite the loss of a "major wholesale customer" which went into administration in January 2015. This is understood to be Bank, which entered administration at that time.

Lipsy also revealed that its sales of third party young fashion brands have increased over the year, and now account for 23% of sales. This is up from 12% last year.

Turnover in the UK fell from £63.5m in 2015 to £59.3m in 2016, but European sales fared better - turnover rose from £2.7m to £3.3m. For the rest of the world, turnover was up from £5.6m to £6.2m.

Lipsy stated: "The directors anticipate that with the continued financial and operational support provided by the Next Group, the company will continue to develop in the years ahead."

Earlier this year, Lipsy cut a number of jobs at its London headquarters following a review of its business needs.