Lounge reports positive growth and plans to continue retail expansion

Multi-channel underwear and apparel retailer Lounge has reported positive year-on-year growth due to growth in its international markets and retail expansion in the UK.

The British-based brand has reported sales of 67.9 million pounds for the year ended June 30, a 6 percent increase and a pre-tax profit of 5.5 million pounds compared to the previous year. This was due to continued growth in mainland Europe, America, Australia, and New Zealand, as well as the opening of four retail stores in the UK.

Along with financial success, Lounge also saw active customers increase by 20 percent across all markets, with significant growth reported in mainland Europe, and orders jumped by 10 percent.

Daniel Marsden, chief executive and co-founder of Lounge, said in a statement: “A focus for us over this period has been creating an omni-channel experience where people can shop online as well as in real life.

“Our retail stores aim to be more of a brand experience piece just as much as a revenue and profit function and is a vision which will continue to be rolled out in the next financial year. As we look ahead at the next 12 months, we are ambitious and positive around the opportunities for growth.”

Lounge continuing retail expansion in the UK and plans first store in Germany

In the new financial year, Lounge said it will continue its focus on mainland Europe, as it sees “huge potential” in that market, as it is already driving a significant portion of the underwear and apparel retailers’ overall growth.

It plans to expand its store portfolio internationally, with its first store set to open in Westfield Oberhausen, Germany, in June, alongside its continued expansion in the UK, with its fifth store set to open in Cardiff, Wales, on May 10.

Located in Cardiff’s largest shopping centre, St David’s, the 1,248 square foot Lounge store follows the successful openings in London, Manchester, Leeds and Bristol in 2023.

The new store will house Lounge’s bestsellers and new collections across underwear, intimates, apparel, swim and sleep. It will also feature a bra fitting service and a breastfeeding-safe space.

Mel Marsden, co-founder of Lounge, said: “To be able to launch another store so quickly into this year after the success of opening our first four in 2023 is incredible. The feedback we’ve received from our customers since our initial openings has made us confident in our continued rollout, and we’re so happy to have a location in Wales.

“It’s our mission to empower women to feel sexy and comfortable in everything that they are, and being able to do this in person is key for our next stage of growth.”

Lounge expands apparel collection with experiential pop-up

While known for its underwear, Lounge has also recently expanded its apparel offering with its new ‘On Campus’ collection, showcasing a new direction for the brand with a capsule collection of versatile basics, from flared yoga pants to racerback bodysuits and tennis dresses.

Lounge is celebrating this new collection for women with an immersive three-day pop-up experience in London from May 3 to 5. ‘The Study Shop’ located at 59 Greek Street in Soho, will showcase the curated apparel collection alongside bookable tables to study or hot desk. The pop-up will also offer four seminars and panel talks on how to launch your dream career, working in social media, building a brand, and the power of personal branding.

Melanie Marsden added: “The year was jampacked with products that captured the hearts of our audience but was also the beginning of the brand's second layer Apparel becoming a core focus.

“The brand felt bolder than ever before and strived to gain more global exposure with inspirational campaigns from collaborations, out of home advertising to a pop-up strategy that led to the future of IRL for Lounge. And we’re not stopping there, this year we’re going bigger, better and more luxurious than ever before.”