Retail boss Theo Paphitis is upbeat on the performance of his lingerie brand Boux Avenue despite the company seeing its pre-tax losses widen from £1.5m to £8.7m, according to its delayed accounts filed with Companies House for the full-year ended 1 April 2023.
The brand said external challenges such as the cost of living crisis and the return of business rates, combined with a £2.6m investment needed to deliver automation in its distribution centre harmed its profitability.
The brand also revealed that turnover fell from £67.1m to £62.6m in the year after it was forced to scale back its marketing and trading in e-commerce which meant it missed its sales plans, which “contributed materially” to its performance.
However, it revealed that for the financial year 2024 it has seen improved profitability due to “improved margins, digital marketing and distribution efficiencies” .
Pathitis said in the report: “Our performance over the peaks of Black Friday, Christmas and Valentine’s was encouraging and we expect to see a significant further improvement in the new financial year.”
Boux Avenue was founded in 2011 and currently operates 28 stores across the UK.
