Radley has shown resilience in a challenging market environment by achieving a 2.1% increase in revenue.
- This growth has been mainly driven by substantial gains in the wholesale and US market sales.
- Website re-platforming and new store openings impacted profitability, reducing EBITDA from the previous year.
- Direct-to-consumer sales rose, benefiting from post-pandemic retail recovery.
- The US market, through Amazon and drop-shipping, significantly contributed to revenue growth.
Radley, a renowned handbag and accessories brand, managed to increase its revenue by 2.1% year-on-year, reaching £77.3 million for the year ending 29 April 2023. The growth was largely due to an impressive double-digit rise in both its wholesale and US market sales.
Despite the growth in revenue, Radley reported an underlying EBITDA of £4.4 million, down from £5.2 million the previous year. This drop in profitability is attributed to challenges related to website re-platforming and costs associated with new store openings in locations such as Essex’s Braintree Village and Seaham’s Dalton Park.
Direct-to-consumer (DTC) sales, constituting 82% of total sales, grew by 8% year-on-year. This increase can be credited to a revival in physical retail as consumers return to stores following the pandemic. However, the brand faced a 20% decline in its online DTC sales, primarily due to disruptions with its e-commerce website during re-platforming, an issue that has since been resolved.
The wholesale sector in the UK saw a 12% increase, spurred by a 15% sales rise at John Lewis Partnership concessions, although total UK sales fell by 1% overall compared to the previous year.
In the US, Radley experienced a substantial 12% increase in total sales, driven by a remarkable 73% rise in drop-shipping with partners and a 38% increase in sales on Amazon’s marketplace. The wholesale sector did face a 26% decline, yet the overall growth in the US market highlights a successful shift in sales strategy.
Radley’s income from licensees, including watches, jewellery, eyewear, and beauty products, rose by 4% to £1.3 million, reflecting continued consumer interest in branded accessories.
Nick Vance, Radley’s CEO since April 2023, remarked on the sustained demand within the US market, stating, “The US continues to be a growth driver for the business with sustained consumer demand for the brand.” He attributed these results to Radley’s multi-channel approach, which has proven effective across stores, concessions, and wholesale businesses.
Radley’s strategic focus on multi-channel sales and key markets anticipates continued growth amidst evolving consumer trends.
