Lingerie retailer Boux Avenue lost £8 million in its first full operating year, financial results revealed today.
Boux Avenue, owned by entrepreneur and Dragon’s Den star Theo Paphitis, expanded its UK offering from six to 17 stores by the end of November 2012 and also opened three international franchise stores.
It expects to open another eight stores in the UK and seven overseas in 2013, further expanding a business which has already created 500 new retail jobs.
Describing the lingerie retailer’s £8 million loss as being “in line with my expectations”, Paphitis commented: “I am pleased with the performances of all three retail businesses I own.”
He expects to have invested more than £30 million from his own funds in the business by March 2015, when it is expected to be profitable, and added: “Investing my own funds allows me to implement strategies that are right for the long term, which continues to excite me.”
Paphitis also owns stationery retailer Ryman, which saw like-for-like (LFL) sales rise by two per cent over Christmas, and acquired general merchandise retailer Robert Dyas in July 2012.
Robert Dyas recorded sales growth of 14.7 per cent in the period from November 1st to Christmas Eve and EBITDA for the financial year ending March 31st 2013 is expected to exceed £4.5 million.
Despite these mixed results, Paphitis’ outlook remains positive.
“We will continue to focus on driving our established brand, Ryman and Robert Dyas, and nurturing Boux Avenue through the early stages of establishing and growing a brand worldwide,” he said.
“Whilst I expect 2013 to be every bit as challenging as the previous two years for the UK economy, I believe with the continued support of all my colleagues the businesses will continue to meet their plans.
“I look forward to exploring what retail has to offer both here in the UK and overseas.”