Weird Fish reports a significant rise in profits for 2023 despite a dip in revenue, signalling strategic growth.
- The clothing brand saw an 80% increase in EBITA, reaching £2.6 million, and a 14% rise in gross profit to £21.3 million.
- Revenue slightly decreased by 4% to £38 million, focusing on profitability with improved sell-through rates.
- Investments in marketing, both online and in-store, have led to higher average basket values.
- The brand plans to open five new stores in 2024 and aims for further expansion with enhanced product ranges.
Weird Fish, a well-known UK lifestyle brand, revealed that despite a slight decrease in revenue, it experienced a remarkable increase in profits in 2023. The company reported an 80% rise in earnings before interest, taxes, and amortisation (EBITA), achieving £2.6 million, alongside a 14% increase in gross profit, amounting to £21.3 million. This marks significant financial growth amidst challenging retail conditions.
According to their latest update, revenue experienced a decline of 4%, settling at £38 million. This drop resulted from a deliberate shift in focus towards enhancing profitability and ensuring better sell-through rates at full price. The brand’s strategic focus contributed to reduced discounting and an improved average basket size, reflecting smarter consumer engagement.
Investment efforts were concentrated on both online and brick-and-mortar channels, yielding a 9% rise in gross margin, reaching 56% in 2023. The company’s marketing campaigns were a major factor in these gains, as they were more effectively coordinated across various channels, leading to greater consumer spend per transaction and less reliance on markdowns.
With trading in the new financial year aligning with management’s expectations, Weird Fish remains optimistic about ongoing improvements in profitability. A key strategy for 2025 is set on enhancing digital capabilities and growing their store presence. Five new store openings are planned for 2024, aiming to further strengthen the brand’s market footprint.
CEO David Butler emphasised the importance of continuous growth and development, stating, “My focus since joining at the end of last year has been to create a more profitable business and accelerate opportunities available to the brand.” Plans include expanding their retail estate and enhancing customer engagement through multi-channel strategies.
Furthermore, the company is diversifying its offerings with three well-defined collections: Outdoor, Heritage, and the newly launched WF collection. These collections reflect Weird Fish’s commitment to broadening their appeal and engaging a wider audience.
Collaborations with notable partners like the Royal Society for the Protection of Birds and the Caravan Club continue to be a part of their strategy. Additionally, partnerships with major retailers such as Next, Mountain Warehouse, and Debenhams are positioned to boost online sales channels. The brand anticipates customer engagement to grow through these expanded avenues.
Weird Fish’s strategic focus on profitability and expansion signifies a promising future for the brand.
