Bestseller, a Danish fashion group, has recorded an 8% profit increase to DKK 5.3bn (£590m) for the year ending 31 July 2024, despite a revenue drop.
- The company’s total revenue fell by 4% year-on-year to DKK 35.6bn (£3.99bn), attributed to declining online sales.
- Earnings before interest and tax (EBIT) saw an 8% rise, thanks to efficiencies in logistics operations.
- Bestseller’s retail channels experienced a 5% sales increase, opening over 330 new stores, totalling more than 2,800 outlets.
- CEO Anders Holch Povlsen highlights ongoing retail expansion and increased investments in sustainable materials.
Bestseller, a prominent Danish fashion conglomerate, has successfully achieved an 8% increase in profits, amounting to DKK 5.3bn (£590m) for the fiscal year ending on 31 July 2024. This profit growth has been realised despite a 4% decline in overall revenue, which fell to DKK 35.6bn (£3.99bn). The downturn in revenue is primarily due to a decrease in online sales, affecting both partner platforms and Bestseller’s proprietary channels.
The company’s earnings before interest and tax (EBIT) experienced an 8% rise, a testament to improved logistical efficiencies. This focus on streamlining operations has counterbalanced the shortfall in online sales, marking a strategic adaptation in challenging market conditions. These internal improvements have fortified the fiscal standing of the company amidst an unpredictable retail environment.
Moreover, sales growth in retail channels has shown a commendable 5% increase as the group continues to expand its physical presence. During this period, Bestseller opened more than 330 new outlets, raising its total to over 2,800 global stores. The strategy included establishing new sites, relocating existing ones, and expanding store sizes, all indicative of a robust retail growth plan.
In line with this physical expansion, Bestseller plans to further invest in sustainable product offerings. The organisation aims to increase its use of organic cotton and recycled polyester, reflecting a commitment to environmentally friendly business practices. This move is projected to enhance the company’s appeal to an increasingly eco-conscious consumer base.
CEO and owner Anders Holch Povlsen expressed satisfaction with the current profit results, acknowledging the necessity of future top-line growth. “We are satisfied that we were able to deliver a strong profit but humbly acknowledge that top-line growth will be required going forward,” Povlsen stated. He also emphasised the significant progress seen in their retail operations, highlighting plans for ambitious expansion in the years ahead.
Bestseller’s financial achievements underscore its strategic resilience in adapting to retail challenges while prioritising sustainable growth initiatives.
