Ann Summers slips into red due to higher payroll and lease costs

The Irish retail arm of Ann Summers last year slipped into the red despite revenues increasing by 12 per cent to €3.34 million.

New accounts filed by Ann Summers (Retail) Ltd show that the company recorded pretax losses of €341,894 in the 53 weeks to the end of July 1st last. This followed it recording a pretax profit of €632,153 in the prior year.

According to group chief executive Maria Hollins, trade held up in the first part of the financial year with a particularly strong Halloween performance.

Ms Hollins added that “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”.

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She stated that despite the challenges the year presented, turnover continued to grow year on year as “a direct result of our clearly defined commercial business strategy, which focused on brand reach and desirability and evolving our omnichannel experience”.

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The Irish unit operates three stores and its principal activity is the retail of lingerie, apparel, adult toys and related accessories.

The directors state that the operating loss of €341,894 “is attributed to increased payroll costs, occupancy costs along with an onerous lease adjustment in the prior year”.

Numbers employed in Ireland increased from 32 to 37 last year as staff costs totalled €625,315. Lease costs increased from €623,552 to €831,093.

At the end of July 1st 2023, the company had a shareholders’ deficit of €2.79 million while its cash funds increased to €170,911.

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