Staff costs drive operating losses at Ann Summers 

Lingerie firm posted a 12% jump in revenues to over €3.3m, but had pretax losses of €341,894

The retailer was boosted with a particularly strong Halloween performance, according to group chief executive Maria Hollins. Pic BILLY HIGGINS STAFF

Staff costs at lingerie business Ann Summers’s Irish retail operations pushed losses higher last year, according to its latest accounts.

Ann Summers posted a 12% jump in revenues to over €3.3m, but had pretax losses of €341,894 in the 12 months to the beginning of July 2023.

In the previous year, the business reported a pretax profit of €632,153.

The directors said that the operating loss "is attributed to increased pay roll costs, occupancy costs, along with an onerous lease adjustment in the prior year".

The business employed 37 people during this period, up from 32 staff in the previous year, and staff costs totalled €625,315. 

Lease costs also increased from €623,552 to €831,093.

The retailer was boosted with a particularly strong Halloween performance, according to group chief executive Maria Hollins.

"However, global supply chain issues that impacted financial year 2021-22 continued into the new financial year, impacting our own supply chain, increasing costs across all key operational areas of the business and having a negative effect on profitability,” she said.

She added that, despite the challenges the year presented the business, turnover continued to grow year on year by approximately €400,000, driven by “ a defined commercial business strategy, which focused on brand reach and desirability and evolving our omni-channel experience".

Ms Hollins said that "against a backdrop of inflationary cost hikes, customer discretionary spend reduction, US dollar exchange rate challenges, and a continued turbulent global market, we feel that we are emerging from the year in a robust position thanks to our continued investment in the business strategy".

By last July, the company had a shareholders' deficit of €2.8m while its cash funds increased more than four fold to €170,911.

Meanwhile, Ann Summers rival Victoria’s Secret earlier this year said sales in 2024 have improved for its overall operations despite more promotions and tough competition.

The lingerie maker said that its preliminary sales and adjusted profit for the quarter were at the high end or above its prior projections. The company said online sales are outpacing in-store results.

• Additional reporting by Bloomberg