Lakeland’s profits plummet by 40%

Lakeland have posted a 40 per cent drop in profits amid growing expansion costs and significant management remuneration.

The homeware retailer’s profits went down to £3.3 million compared to £5.5 million in the previous year.

This has been attributed to the costs of expanding its warehouse in Cumbria, acting as a significant drain on its margins. 

RELATED: Lakeland presses ahead with Australian expansion

Notably, there was also an increase of £500,000 in payouts to its management team, from £2.4 million to nearly £3 million.

Despite the sharp decline in profits, Lakeland‘s sales were up 1.8 per cent to £178.8 million. 

It says the popularity of the Great British Bake Off has had a positive effect on sales, being the latest store to cash in on the GBBO effect.

It now trades from over 60 outlets nationwide and has a growing presence in the Middle East, Germany, India and Australia. 

Click here to sign up to Retail Gazette’s free daily email newsletter


Please enter your comment!
Please enter your name here