Radley reported a 2.1% increase in group revenue, reaching £77.3m by April 2023.
- The drop in EBITDA was attributed to website re-platforming issues and new store costs.
- Direct-to-consumer sales rose by 8% as brick-and-mortar retail rebounded post-pandemic.
- US sales increased 12%, boosted by Amazon and a shift to drop-ship models.
- Nick Vance highlights the effectiveness of a multi-channel strategy in the UK and US.
British handbag and accessories brand, Radley, has seen a group revenue growth of 2.1%, bringing the total to £77.3 million for the year ending 29 April 2023. This growth was driven by a substantial increase in both wholesale and US market sales, despite a decrease in EBITDA, which dropped to £4.4 million from the previous year’s £5.2 million. The profitability decline was largely due to costs associated with re-platforming its website and opening new stores at Essex’s Braintree Village and Seaham’s Dalton Park.
The brand’s direct-to-consumer (DTC) sales accounted for 82% of total sales, marking an 8% increase compared to the prior year. This reflects the resurgence of brick-and-mortar retail following the pandemic. However, online DTC sales suffered a 20% decline due to disruptions caused by the website’s re-platforming process, an issue which has now been resolved.
In the UK, Radley’s wholesale sales grew by 12%, primarily driven by a 15% increase in sales through John Lewis Partnership concessions. Despite this, total UK sales experienced a marginal decrease of 1% compared to the previous year. Across the Atlantic, Radley’s US market showed a promising growth rate of 12%. Although traditional wholesale sales in the US fell by 26%, the company effectively pivoted towards a drop-ship fulfilment model with partners, which surged by 73%, alongside a significant 38% rise in Amazon marketplace sales.
Radley also saw a 4% increase in income from its licensed products, including watches, jewellery, eyewear, and beauty items, which collectively contributed £1.3 million year-on-year. This diversified approach underscores the brand’s strategic shift towards leveraging multiple sales channels and product lines.
Nick Vance, who assumed the role of CEO in April 2023, remarked, “The US continues to be a growth driver for the business with sustained consumer demand for the brand. Our multi-channel approach in the UK and US has proven its worth again with solid improvements in our store, concession, and wholesale businesses.”
Looking ahead, Radley anticipates ongoing growth in its DTC sales for the year ending April 2024, even as it expects a decline in wholesale channels due to reduced demand from stockists.
Radley’s strategic focus on diversified sales channels and markets is poised to drive sustained growth in the future.
