Lipsy posts sales growth boosted by third party brands

By

Barbara Santamaria

Published
Jun 19, 2018

Young fashion brand Lipsy increased revenues by 23% in the year to 27 January, before it decided to close its own website to focus on its online sales through Next.

The brand, acquired by Next in 2008, made £99.3 million in sales last year, up from £80.5m, documents filed at the UK’s Companies House showed.

Pre-tax profit was up slightly to £6 million from £5.2 million a year earlier, while profit for the period was £4.8 million.

The company sells its fashion-led clothes through a chain of 40 UK stores, online via next.co.uk and through wholesale and international franchise operations.

In addition to Lipsy, the retailer sells affordable and popular brands including Office, Boohoo, Aldo, Little Mistress, Miss Selfridge and Quiz, mainly on a commission basis.

The retailer said sales of third-party young fashion brands increased during the year and now account for 44% of sales, compared to 34% in 2017. This is expected to increase in the years ahead, said the report.

“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,” it said in the financial statement.