The Fragrance Shop has hailed strong Christmas results boosted by customer demand for luxury scents.
The Manchester-headquartered company reported a 1.2 per cent increase in revenue growth for the seven weeks to January 4 despite heavy discounting.
It said online revenue rose by 17 per cent and overall like-for-like sales were ‘positive.’
The company said the festive performance underlined the increasing attraction of retailers that can successfully integrate an online and offline offer.
During Black Friday its ‘click and collect’ orders rose 40 per cent.
It also successfully traded three pop-up “sniff bars” in the run-up to Christmas, which combine retail and digital in an ‘immersive and interactive customer experience.’
Popular scents over the festive period included Chanel, Dior and Sauvage.
Overall it’s been a positive year for The Fragrance Shop despite a dip in profits.
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Revenues for the year to March 2019 weer up 2.6 per cent to £124.7m.
Online sales grew by 17 per cent per cent during the year.
EBITDA was 5.5 per cent lower than the prior year at £15.5m and net profit £9.6m, 5.2 per cent lower than FY 2018.
The group said this was largely down to ‘kamikaze discounting’ at distressed retailers that made the market acutely competitive alongside rising wage costs and increasing rates bills.
Despite the closure of its House of Fraser concessions in the final quarter of FY2019, The Fragrance Shop opened 10 new stores in that financial year and to date, has opened six new stores in the current financial year.
“The market is tough and competition for fewer high street customers is undoubtedly fierce,” said chief executive Sanjay Vadera.
“But while we were sad to say goodbye to our House of Fraser concessions in January 2019, I’m proud to lead a retail business that can say it didn’t close a single high street shop during the calendar year and continued to grow online and offline.
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“We’ve opened 15 stores over the last 18 months because it’s clear the winners in retail will be those that can successfully integrate their digital and physical businesses to look after a customer that wants to pick and mix between the two.
“Our robust full year and Christmas trading, delivering growth in a fragrance and beauty market that has shrunk in 2019, is testament to our obsession with giving our customers the quality, service, experience and products at the best prices across all our channels.
“And while we will continue to focus on tight cost controls, we will continue to invest in our supplier partnerships that help us deliver the innovation we know our fragrance and beauty customer wants.”
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