Radley reports revenue growth in FY16 as online sales increase 20%

By

Barbara Santamaria

Published
Feb 6, 2017

British handbag brand Radley increased revenue by 4.8% to £41.8 million in the 12 months to 30 April 2016, helped by strong growth in UK and international online sales, which were up by 20% in the period.

The company has 44 standalone retail stores and 41 concessions, as well as wholesale partners in 15 countries and a global e-commerce platform serving 47 countries.

The brand’s affordable luxury handbags, favoured by British celebrities including Pippa Middleton, performed well internationally reporting a 12% sales growth in the period.

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Trading in the UK was also strong, up 5% in the year as three new locations launched and six other stores reopened after undergoing refurbishment or relocation.

The increase in revenue was offset by investment into business infrastructure, people and processes along with the preparation for the sale to Bregal Freshstream. The private equity firm became the majority shareholder of the group in June 2016.

As a result of these factors, operating profit for FY16 declined by more than 40% to £1.8 million.

Despite this, the company said “the directors were pleased with the improved sales performance during FY16, specifically with the double-digit growth in online and global Travel Retail sales, which provided the foundation for further investment in the business to deliver on the significant growth opportunities arising under future new ownership”.