Space NK sales and profits rose pre-Covid
Space NK has reported turnover for the year to March 28 2020 rising to £125.7 million from £108.9 million in the previous year. It said its sales growth was driven by a “strong performance in the retail online and wholesale channels”.
And the company’s profit on an EBITDA basis edged up to £7.8 million from £7.5 million. Meanwhile, net profit rose to £2.6 million from £2.3 million.
But it said that due to the effects of the pandemic – which began to kick in at the very end of the period in question – the future outlook is expected to see “a migration of sales towards the online retail channel, while physical stores are expected to see subdued sales and profitability”.
As mentioned, towards the end of the period, its retail stores were forced to close due to government regulations and these closures, plus change in consumer behaviour, have understandably continued to have an impact on its retail sales into its new financial year. That said, online sales have partially compensated for the decline in retail store turnover. And it added that its wholesale division has been less affected by the impact of Covid-19.
But the pandemic crisis has forced it to take a good strategic look at the business and during the last year it closed its Lipstick Queen brand and then sold it last September.
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