The Fragrance Shop has reported increased annual sales and profits after it recovered from the impact of the pandemic and reaped the benefits of investment in its omnichannel strategy.
The perfume and aftershave retailer saw its total turnover jump 42.5% to £156.83m in the 53 weeks to 2 April 2022, with EBITDA before exceptional items climbing 68% to £27.53m.
Although all its stores were closed in the opening weeks of the financial year because of Covid restrictions, The Fragrance Shop noted that the impact was smaller than the previous year when there were three extended lockdowns.
Once its stores reopened, they are said to have traded strongly as increased spending by customers offset the effects of reduced footfall. As a result, underlying store sales were up 101% on the prior year and up 6.2% on its 2019/20 financial year.
The results were also boosted by the opening of 18 new shops, taking the total to 215.
Online sales fell 12% against tough comparatives with bumper demand during the pandemic. However, they were up 129% in comparison to the pre-pandemic level.
Looking ahead, the company said it expected the retail environment to remain “competitive and challenging”, especially given the economic outlook, inflationary forces and ongoing pressures on supply chains.
It added: “The group has shown a robustness in trading to the challenges presented over the previous pandemic-impacted years and is well placed to navigate the current uncertainty going forwards and will continue to roll out stores and expand its digital footprint.”
The Manchester-based company’s results come as it moves into its new state-of-the-art headquarters and distribution centre at Trafford Park that will support its expansion plans.
