Jan 3, 2017
Lulu Guinness cuts losses, says sales are improving
Jan 3, 2017
Lulu Guinness’s international expansion and retail consolidation helped it in the year to the end of March with losses falling, despite the tough environment.
While sales in the period dipped to £9.1m from £9.5m, pre-tax losses dropped significantly to just short of £90,000, an improvement after the business lost £253,181 a year earlier.
The company, known for its signature red lip bags and decorative lip motif, is broadening its product offer to try to reduce its dependence on the highly competitive handbag sector.
It may not have reached break-even but it is very close after closing two lossmaking London stores, closing its New York store and boosting its business with new stores outside of its domestic market, especially in Greater China.
The company has also opened a more affordable Covent Garden pop-up store in London and said it is also adding footwear and soft accessories in order to diversify its offer.
It said the current year has been stronger with sales up 10% so far on the back of online growth and higher tourist spending. Sales rose 9% on Black Friday, The Telegraph reported.
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