Lounge Underwear has reported that pre-tax profits dropped 33% to £5.5m during the year ended 30 June 2023, as the retailer focused on expanding its brick and mortar presence.
The group’s pre-tax loss comes despite sales increasing 6% to £67.9m, as its active customer base also rose 20% across all of its markets. It also experienced significant growth across mainland Europe, causing online orders to rise 10%.
The underwear and clothing retailer opened a total of four stores in the past year, after seven years of trading solely online.
Having opened its first permanent physical store in Westfield White City, London, Lounge Underwear had also expanded its presence to Manchester’s Trafford Centre, Trinity Leeds and Cabot Circus in Bristol.
In July 2023, Lounge Underwear announced plans to open a total of eight stores within a year.
The group, which also plans to expand its store presence internationally, will also open its first shop in Germany in June.
Daniel Marsden, CEO of Lounge Underwear, said: “A focus for us over this period has been creating an omnichannel 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.”
He added: “As we look ahead at the next 12 months we are ambitious and positive about the opportunities for growth.”
