LK Bennett records losses of £4.5m as turnaround efforts continue

LK Bennett

Luxury fashion retailer LK Bennett has reported annual operating losses of £4.5 million as its chief executive continues to drive turnaround efforts.

In the 12 months to July 2016 the company saw turnovers drop by one per cent to £92.3 million, while gross profits dipped two per cent to £58.3 million.

Meanwhile, like-for-likes edged up one per cent, driven by an online sales boost of 19 per cent as its wholesale arm was boosted 2.3 per cent and US operations grew.

Amid efforts to refocus LK Bennett’s offering and returning to the eponymous founder‘s vision of affordable luxury, the retailer shut four loss-making stores in the UK.

READ MORE:  LK Bennett founder returns to her eponymous chain

Darren Topp joined LK Bennett as chief executive after leaving the same role at BHS, and has since announced plans for ambitious expansion across China, Russia and Qatar, opening 40 stores a year.

The refocusing efforts will also include widening its price points to appeal to a larger market as well as strengthening its design, buying and merchandising teams.

Non-executive chairman Patrick Woodall said current figures showed like-for-likes up six per cent and that he was happy with the retailer‘s results amid a “very challenging market”.

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