Danish fashion group Bestseller has successfully increased its profits by 8% to DKK 5.3 billion (£590 million) despite facing a revenue decline.
- The company’s annual revenue fell by 4%, largely due to decreased online sales through its own channels and partners.
- Strong growth in retail sales, up by 5%, and strategic expansion of over 330 new stores contributed positively.
- Efficiency improvements in logistics significantly boosted earnings before interest and tax (EBIT).
- Bestseller’s commitment to sustainability through investment in organic and recycled materials remains a focus.
Danish fashion giant Bestseller has navigated challenging market conditions to report an 8% increase in profits, reaching DKK 5.3 billion (£590 million) for the fiscal year ending July 31, 2024. This profit growth comes despite an overall 4% decline in revenue, which fell to DKK 35.6 billion (£3.99 billion).
The drop in revenue was primarily driven by reduced online sales, both from its own platforms and via partner channels. This downturn was offset by a robust performance in retail sales, which saw a 5% increase. Bestseller’s strategic initiative to expand its physical retail footprint resulted in the opening of more than 330 stores worldwide, encompassing new sites, relocations, and upsizing, thereby pushing the total number of outlets to over 2,800.
Central to Bestseller’s improved profit margins were notable efficiency gains within its logistics operations, significantly enhancing its earnings before interest and tax (EBIT). This operational efficiency has been a crucial factor in sustaining profitability amidst a competitive fashion industry landscape.
In aligning with contemporary consumer preferences, Bestseller has increased its investment in sustainable product offerings. The company is focusing on increasing the use of organic cotton and recycled polyester in its product line, reflecting a firm commitment to sustainability.
CEO and owner Anders Holch Povlsen expressed satisfaction with the year’s financial outcomes, while acknowledging the necessity for top-line growth in future periods. He emphasized the company’s ambitious plans for retail expansion and the continuous enhancement of customer experiences by optimizing collections and opening larger stores at prime locations.
Bestseller’s strategic focus on retail expansion and sustainability positions it well for future growth despite current revenue challenges.
