Ann Summers’ Irish retail division fell into a deficit last year, despite witnessing a 12 per cent surge in revenues, which amounted to €3.34 million. The company, Ann Summers (Retail) Ltd, reported pre-tax losses totalling €341,894 for the 53 weeks ending July 1st, which contrasted to a pre-tax profit of €632,153 from the previous year.
Marie Hollins, the group’s Chief Executive, indicated that the beginning of the financial year exhibited resilient trading, highlighted by an impressive Halloween showing. Even though that was the case, the global supply chain issues that impacted the fiscal year 2021-22 persisted into the new fiscal year. These issues affected the company’s supply chain, raised costs in all primary business areas, and exerted a negative influence on profitability, according to Hollins.
Nonetheless, Hollins noted, turnover maintained its growth trajectory year on year, which she attributed to their well-articulated business strategy aimed at enhancing brand reach, desirability, and developing a multi-channel experience, even amid the year’s challenges.
The Irish subsidiary, which mainly sells lingerie, clothing, adult toys and related accessories, runs three stores. The directors clarified that the operating loss of €341,894 resulted primarily from higher payroll and occupancy costs, plus a burdensome lease adjustment in the preceding year.
The workforce in Ireland grew from 32 to 37 in the past year, pushing the total staff costs to €625,315, while lease costs escalated from €623,552 to €831,093. Upon closing on July 1st, 2023, the company had a shareholders’ deficit of €2.79 million, but its cash reserves increased to €170,911.