Radley reported a 2.1% growth in annual group revenue, reaching £77.3 million.
- Radley’s direct-to-consumer sales surged by 8% due to physical store rebounds.
- US market sales grew by 12%, despite a decline in wholesale activity.
- John Lewis concessions drove a 15% rise in UK wholesale sales.
- Challenges include website re-platforming and costs for new store openings.
The handbag and accessories brand Radley has experienced a notable 2.1% increase in year-on-year group revenue, culminating in a total of £77.3 million for the year ending April 29, 2023. This growth was largely influenced by a significant double-digit rise in wholesale and US market sales.
Radley’s direct-to-consumer (DTC) sales accounted for an impressive 82% of total sales in the reported period, up from 78% the previous year. This sector saw an 8% increase in sales across its three stores and 19 outlets in the UK. This positive trend reflects a post-pandemic resurgence in physical retail, aiding the brand’s overall revenue growth.
Meanwhile, in the United States, total sales rose by 12% despite a 26% decrease in wholesale activities. This decline in wholesale was counterbalanced by a strategic pivot towards a drop-ship fulfillment model, which expanded by 73%. Furthermore, sales through platforms such as Amazon increased by 38%, contributing to Radley’s US market success.
The UK wholesale arm benefited from a 12% sales surge, bolstered by a remarkable 15% increase in sales from John Lewis Partnership concessions. However, Radley faced an overall 1% decline in total UK sales compared to the previous year.
In terms of profitability, Radley reported a decrease in underlying EBITDA to £4.4 million from £5.2 million in the prior year. This reduction was attributed to complications arising from website re-platforming and the costs associated with opening new retail locations, including sites at Essex’s Braintree Village and Seaham’s Dalton Park.
Radley saw a 4% rise in income from licensed products such as watches, jewelry, eyewear, and beauty items, reaching £1.3 million. CEO Nick Vance, who took over in April 2023, acknowledged the US market’s role as a key growth driver and emphasized Radley’s effective multi-channel approach in both the UK and US markets.
Radley anticipates continued direct-to-consumer growth with a strategic focus on mitigating wholesale channel declines.
