Cotton Traders has announced a decrease in both turnover and profit for the financial year 2023.
- The company reported a 9.9% reduction in operating profit, totalling £9.8 million compared to 2022.
- Turnover also saw a decline of 1.7% to £109.4 million for the 52 weeks in 2023.
- Despite economic challenges, online sales increased, notably in womenswear.
- Physical store sales rose slightly due to new store openings, indicating progress amid adversity.
Cotton Traders revealed its financial performance for 2023, noting a 9.9% decrease in operating profit to £9.8 million, compared to the previous year. The fall in profit is attributed to ongoing inflation and the cost of living crisis, which have led to reduced consumer confidence.
The company’s turnover experienced a 1.7% decline, amounting to £109.4 million over the 52-week period in 2023. Despite these challenges, the majority of sales were conducted through their e-commerce channels, which saw a rise in sales by 6.2% on their website and 11.1% via their mobile app.
In the realm of womenswear, Cotton Traders witnessed a 10% overall increase in sales, driven by a 13% rise in woven tops and a 7% growth in women’s trousers. Conversely, menswear sales remained stable, though there was a significant uplift in specific categories, with shirts and knitwear seeing increases of 20% and 11%, respectively.
The brand’s expansion into physical stores contributed to a 0.6% increase in in-store sales, now making up 21.5% of total sales. This expansion included opening 10 new stores in 2023, bringing the total number of outlets to 87, with 81 stores performing profitably throughout the year.
Nick Hamblin, CEO of Cotton Traders, expressed optimism amidst the challenges, stating, “It’s promising to see our investment into physical stores paying dividends with an uplift not only in sales year-on-year, but also orders in-store. The cost of living crisis has resulted in low consumer confidence and macroeconomic turmoil and we are so proud our customers remain loyal to the Cotton Traders brand despite the wider economic challenges.”
Cotton Traders remains optimistic about further growth, particularly through expanding its marketplace strategy.
