LK Bennett's financial year ends in red

Luxury fashion brand LK Bennett has announced a pre-tax loss of 3.1 million pounds for the financial year ending January 27, 2024. This marks a significant downturn compared to the 2.3 million pounds pre-tax profit reported the previous year, according to filings with Companies House.

The company’s revenue for the year under review also fell sharply, dropping from 48.7 million pounds to 42.1 million pounds.

The board attributed the losses to the challenging UK economic climate, pointing to global factors that have fueled the cost-of-living crisis and high inflation. The economic contraction in the UK has affected consumer spending, impacting the brand's sales.

To counter these challenges, LK Bennett highlighted its ongoing efforts to better align with customer needs. These initiatives include diversifying its product range, expanding size options, and introducing new categories. The company acknowledged supply chain and distribution difficulties but noted that its local supply base offers some protection against rising costs.

Founded in 1990 by Linda Bennett, the brand opened its first store in Wimbledon. After entering administration in 2019, LK Bennett was acquired by Byland UK and continues to navigate the shifting retail landscape.