Cotton Traders experienced a decrease in revenue and profit during 2023 due to challenging economic conditions.
- The company’s turnover fell by 1.7% over 52 weeks in 2023, compared to a longer 53-week period in 2022.
- Operating profit decreased by 9.9% to £9.8 million year-on-year, influenced by inflation and the cost of living crisis.
- E-commerce sales increased, particularly in womenswear, while in-store sales also showed growth due to new store openings.
- Menswear sales remained steady, with notable increases in specific categories.
Cotton Traders reported a decline in its financial performance for 2023, attributed to broader economic pressures such as inflation and the cost of living crisis. The company’s turnover fell by 1.7% over the 52-week period to £109.4 million, compared to 2022’s 53 weeks. Meanwhile, operating profit showed a sharper decline of 9.9%, reaching £9.8 million.
The company saw significant growth in its e-commerce segment, with online sales through its website increasing by 6.2%, and mobile app sales surging by 11.1%. Womenswear emerged as a particularly strong category, with an overall sales increase of 10%, bolstered by a 13% rise in woven tops and 7% growth in women’s trousers.
Menswear sales remained consistent with the previous year, with shirts and knitwear experiencing growths of 20% and 11%, respectively. This steadiness contrasts with the wider economic challenges facing the retail sector.
In addition to e-commerce, Cotton Traders’ investment in brick-and-mortar locations paid off. The company opened 10 new stores, which contributed to a modest 0.6% increase in in-store sales. These new outlets brought the total number of its store fascias to 87, with 93% of these outlets delivering profitable results.
CEO Nick Hamblin expressed satisfaction with the physical store performance despite economic challenges, highlighting plans for continuing marketplace growth. The brand has been trialling this strategy through partnerships with online platforms such as Debenhams.com and Freemans.com.
The financial outcomes suggest a measured growth strategy amid ongoing economic pressures.
