LK Bennett profits hit £30m amid spike in eventwear sales
Meanwhile, its profit margin increased 420 bps to 61.9% in what the retailer described as its ‘strongest year in over a decade’, as EBITDA reached £4m
LK Bennett has reported a 40% rise in its gross profit for the year ended January 2023 to over £30m, thanks to an increase in eventwear sales, according to Drapers.
During the 12 months to January, the brand’s turnover stood at £49m, which means a 30% increase on the previous year.
Meanwhile, its profit margin increased 420 bps to 61.9% in what the retailer described as its “strongest year in over a decade”, as EBITDA reached £4m, three times higher than the previous financial year. Operating profit increased to £2.9m, four times higher than last year.
According to Drapers, the company attributed the growth to an increase in sales of eventwear, particularly dresses, coming out of the pandemic. Directors also believe the return of weddings and events generated around £1m in profit.
LK Bennett is currently expanding its store presence in the UK, having already opened a new store in Cheltenham last week.
Earlier this month, the retailer also became official sponsor of Ascot Racecourse from 2023 in a three-year collaboration.
Darren Topp, CEO of LK Bennett, told Drapers: “We are delighted to announce another year of significant growth in profit for LK Bennett, our most successful year for over a decade.
“While we recognise that this was supported by a bounce back in sales post-Covid, the underlying business is stronger today as a result of the actions taken over the past four years, and I am very grateful to my colleagues for their contribution.”
