Ann Summers pre-tax loss widens to 13.1 million pounds

Lingerie firm Ann Summers pre-tax loss widened to 13.1 million pounds for the year to June 29, 2024 compared to a loss of 3.8 million pounds in the prior year. The last time Ann Summers reported a pre-tax profit was in the year to June 2021 at 6.6 million pounds.

Accounts filed with the Companies House show that the Ann Summers and Knickerbox owner’s turnover also declined from 104.5 million pounds to 93 million pounds for the reviewed year and an adjusted EBITDA loss of 5.7 million pounds.

CEO Maria Hollins attributed the challenging performance to inflation, the cost-of-living crisis, and a volatile political landscape, all of which impacted consumer confidence and discretionary spending.

“The web sales remained stable, despite challenges advertising online due to Google safe search restrictions and Meta blocking issues.”

Across core markets, Ann Summers’ turnover in the UK declined to 89.7 million pounds in the year, from 3 million pounds to 2.8 million pounds in the rest of Europe and to 503,231 pounds in the rest of the world.

The company ended the financial year with 80 stores in the UK, down from 85. However its headcount rose from 1,114 to 1,180. Despite the tough trading conditions, Ann Summers highlighted its third-party partnership with ASOS as a key success.

“We have continued to support the strategic growth of the business, investing £6.8 million during the period,” the company stated. “We launched our new Knickerbox website to help mitigate limitations from Google SafeSearch.”

Looking ahead, Ann Summers remains committed to investment and transformation. “Our focus is on driving profitability through strategic partnerships, enhancing online and in-store experiences, and maintaining a disciplined approach to cost management,” the company said.