Neom shines in transformational year on digital strength
After weathering a tough pandemic, it’s no wonder the wellbeing and skincare sectors are thriving. And Neom’s latest set of results reflect this with strong year-end sales and “continued growth and momentum” via its digital-first omnichannel strategy.
Claiming innovative products “to help customers sleep better, stress less, boost mood, and improve energy”, the UK-based international retailer also offers a wide range of skin and body products. It reported a 84% leap in fiscal 2020 sales to £28.9 million.
In a “transformational year”, Neom said the rise was “driven by successful product innovation and a near tripling of digital sales as more consumers increasingly prioritised their wellbeing”.
Digital sales, comprising own e-commerce and estimated digital portion of wholesale and e-partners, represented 80% of total sales.
The active customer base also increased 120%, with a 204% increase in total customers placing an order, supporting its own e-commerce sales growth of 180% and website traffic increasing 150%, it noted.
EBITDA “increased significantly” to £4.9 million for a meagre £0.4 million in fiscal 2019, “reflecting the company’s operational leverage and highly profitable model”.
It noted its increased international presence through a US partnership with Nordstrom, the launch of the Neom US website, and partnership with Douglas in Europe.
Complementing the brand’s digital expansion during FY20 included the addition of its ‘wellbeing hub’ retail stores. Last October, Neom opened a retail space adjacent to London’s Liverpool St Station, bringing the total number of wellbeing hubs to five.
The company said it has seen “further very strong momentum” during the first half of 2021 with sales up more than 60% against strong FY20 comparatives.
CEO Oliver Mennell said: “We have delivered significant increases in revenue and profitability, driven by further growth in D2C and digital sales as well as continued successful product innovation.
“In addition, we are delighted to confirm that this strong growth has continued into the current financial year, with H1 2021 sales up over 60% year-on-year, reflecting the strength of the Neom brand and our digital-first omnichannel model, our unique product proposition and position in the significant and growing global wellbeing market."
He added: “The Neom brand has incredibly exciting growth opportunities supported by our focus on new product development, accelerated consumer shifts towards digital and DTC channels, and international expansion opportunities to build on Neom’s rapidly developing position in the US market and significant opportunities in other fast-growing wellbeing markets such as China.”
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