PrettyLittleThing sales are up, although profits have fallen for the financial year to February 28, 2022 following a slowdown in international sales and a rise in return rates.
The drop in profit comes despite growing revenues for the Boohoo-owned fashion brand, up to £712.2m for the period from £710.1m in the previous year. The company’s pre-tax profits fell from £98.7m to £75.1m over the same period, however.
PrettyLittleThing said its pre-tax profits were impacted by £11.6m of costs related to the automation of its Sheffield warehouse, a £125m project.
The company, established in 2012 by brothers Umar and Adam Kamani, was bought by Boohoo, co-founded by their father Mahmud Kamani, in January 2017.
PrettyLittleThing said in a statement that it expected sales to remain healthy despite the current economic climate: “Customers throughout the world are expected to continue to seek quality product that represent value for money. The company’s business model allows it to react quickly to changes in consumer demand and the business continues to focus on offering customers the latest fashion trends at market leading prices, developing its product offering with a greater focus on value proposition to maximise its share of what is likely to be overall reduced consumer spending.”
It added: “We have built a brand and infrastructure to capitalise upon this opportunity and we will continue to grow our market share globally by focusing on key markets. The current economic climate of high inflation and cost pressures on consumers creates potential challenges for all retailers. The business takes continued actions to ensure we have the most relevant product offering for our customers with a focus on value and quality which should allow the business to be a go-to destination for consumers even at a time where their spending power has been compromised by current economic conditions.”
