Danish fashion group Bestseller has recorded an 8% increase in profits to 5.3 billion DKK (£590 million) by the end of July 2024.
- Despite a 4% drop in annual revenue to 35.6 billion DKK (£3.99 billion), Bestseller achieved profit growth.
- This profit rise was largely facilitated by enhanced efficiency in logistics operations.
- Retail sales saw an upward trend with a 5% increase and the opening of over 330 new stores.
- Bestseller plans to expand its retail presence and focus on sustainable materials in future production.
The Danish fashion group Bestseller reported a notable achievement in increasing its profits by 8% to 5.3 billion DKK (£590 million) by the end of the fiscal year on 31 July 2024, despite a decline in revenue. This signifies the company’s adeptness in navigating financial challenges.
Bestseller faced a 4% year-on-year decline in top-line revenue, which fell to 35.6 billion DKK (£3.99 billion). This decrease was largely due to a reduction in online sales, both through its partners and its own platforms, which outweighed the gains made in retail sales.
The increase in earnings before interest and tax was primarily driven by efficiency improvements in logistics operations. Such strategic enhancements underscored a resilient profit model even amid declining revenues.
Retail channels experienced a 5% boost in sales, contributing to the company’s profitability. Over 330 new stores were added, increasing the total to over 2,800, including new sites, relocations, and upsizing efforts. Bestseller plans to continue this retail expansion in the forthcoming years.
Looking ahead, Bestseller intends to enhance its investment in sustainability by increasing its use of sustainable materials, such as organic cotton and recycled polyester, indicating a commitment to eco-friendly fashion trends.
Bestseller’s CEO, Anders Holch Povlsen, expressed satisfaction with the profit outcomes while acknowledging the need for top-line growth in the future. He commented on the positive progress seen in retail stores, emphasising the company’s strategy to optimise shopping experiences and expand retail locations.
Recently, Anders Holch Povlsen acquired a majority stake in Topshop from Asos, a move that could potentially align with Bestseller’s strategic expansion efforts.
Bestseller Group’s strategic focus on logistics and retail expansion has effectively led to profit growth despite challenges, reflecting a commitment to innovation and sustainability.
