Fragrance Group sales and profits boosted by omnichannel strategy

The Fragrance Shop has reported increased annual sales and profits as it bounced back from the impact of the pandemic and “reaped the benefits” of investment in its omnichannel strategy.

During the 53 weeks to 2 April 2022 it saw total turnover rise 42.5%to £156.83m and profits measured by EBITDA before exceptional items rose by 68% to £27.53m, up from £16.35 m.

It said that although all stores were closed in the opening weeks of the financial year because of Covid lockdown restrictions, the impact was smaller than the previous year when there were three extended lockdowns.

Once stores reopened, it said the stores traded strongly as increased spending by customers offset the effects of reduced footfall. As a result, underlying store sales were up 101% to the prior year and up 6.2% to 2019-20.

It added the strength in stores was complemented by the opening of 18 new shops as part of the continued rollout strategy, taking the total number of locations to 215.

Looking forward, it added the company said it expects the retail environment to remain “competitive and challenging”, especially given the economic outlook, inflationary forces and ongoing pressures on supply chains.

CEO Sanjay Vadera said: “Despite the seismic events of the past few years and current macro-economic trends, we are a business that’s in confident mood, delivering to both the top and bottom line as we spray a little happiness to our customers both in store and online.

“I want to thank our people for their commitment to the business and our customers – their resilience and entrepreneurial spirit continues to inspire me every day.”