// Boux Avenue reports £9.9m loss in 2018
// Its turnover and like-for-like sales also dropped significantly
// “Additional funding” will be required for it to continue trading in the near future
Boux Avenue swung to a dramatic loss of nearly £10 million throughout 2018 as falling sales and an increasingly difficult retail environment hit margins.
For the year ended March 31 2018, the lingerie retailer posted an operating loss of £9.9 million, up from a loss of just £3.8 million a year prior.
Like-for-like sales also dropped three per cent during the year, down from a seven per cent increase in 2017.
Turnover dipped from £49.4 million in 2017 to £47.4 million this year, while gross profits also fell from £27.4 million to £25.5 million.
According to its statement in Companies House, the retailer will require “additional funding in order to see it through to profitability”.
However, it is understood that its ultimate owner Theo Paphitis intends to provide “any additional funding required for the foreseeable future”.
It attributed its increasing losses to tough trading conditions in the womenswear market, alongside supply chain issues, major discounting, and a £3 million investment in a new distribution centre.
“Online results appeared more positive with a continued double digit increase of sales in its ecommerce business; however growth has slowed compared to the previous year suggesting the retailer should increase targeted ads to continue to drive online traffic,” GlobalData’s senior retail analyst Karla Rende said.