The Entertainer’s pre-tax profits dropped from £22.5m last year to £7.6m, despite experiencing nearly a 10% rise in sales.
The toy retailer’s sales edged up 1% on pre-pandemic levels, for the year ended 28 January 2023. While store sales were “up significantly”, the business noted online sales dropped compared to the previous year, although were higher than pre-Covid.
The retailer said it had been hit by socio-economic conditions over the year.
It said: “Despite having prepared for a post-pandemic recovery, the cost of living crisis and Ukraine war impacted shopper demand, especially during the second half of the year, according to the company.
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The Entertainer said it had now prepared for a challenging year ahead.
It said: “The business has prepared for another difficult year ahead as customers continue to be challenged by record levels of inflation. As a result of the last 3 years of unprecendent challenges, the business and its teams are now stronger and more resilient to the constantly changing retail landscape.
“The business remains cautious about the short-term outlook but remains in a strong position to overcome these challenges and prosper for the long term.”
Earlier this month, The Entertainer revealed it had snapped up outgoing John Lewis Partnership COO Andrew Murphy as its new chief executive.
Murphy, who resigned from John Lewis Partnership last year after 30 years at the helm, will join The Entertainer in mid-October.
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