Boux Avenue full-year sales up but investment hits profits

Boux Avenue recorded a rise in turnover but saw losses increase during its latest financial year as it invested heavily in a bid to become a global leader in lingerie retail.

In the year to April 1, 2017, total UK sales increased by 11.2% to £49.4m, while like-for-like sales rose 7%, helped by a strong performance online, accounts filed with Companies House show.

But the EBITDA loss for the year was £2.2m, up £500,000 on the last financial year, due to large-scale investments across the board.

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In 2017, Boux Avenue constructed a 70,000ft2 warehouse and fulfilment facility in Crewe at a cost in excess of £3m.

The new warehouse is set to meet the rising demand for the retailer’s lingerie and swimwear styles internationally.

Boux Avenue also opened a new store in West Gate shopping centre, Oxford, and launched a new website.

Commenting on the financial results, Boux Avenue founder and CEO Theo Paphitis said: “I am pleased to report further growth across all channels for the year.

“Our investment in the business, which was launched in April 2011, has continued as with all previous years, with recent focus in particular being on the infrastructure supporting growth through our website.

“Our online business continued to deliver growth at over 30%, in line with our plans and we are confident that the additional investment mentioned above will support this further. We have also successfully developed further channels through wholesaling through other online retailers, both in the UK and internationally.”

Paphitis acknowledged the £2.2m loss but said with continued growth, his company expects its investment in developing the Boux Avenue brand to generate returns in the near future.

But the entrepreneur said he expects retailing in the UK to remain challenging, “not helped by the political and economic uncertainty we face”.

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