LK Bennett, the British fashion brand, has reported impressive financial results for the year ending in January, with both sales and profits showing significant growth. The company experienced a 30% increase in turnover, reaching £49 million, while gross profit rose by 40% to over £30 million. LK Bennett also saw a substantial improvement in its margin, which rose by 420 basis points to 61.9%. The company’s EBITDA reached £4 million, a threefold increase, and operating profit rose to £2.9 million, four times higher than the previous year. These results mark LK Bennett’s strongest year in over a decade.
One of the key drivers of this success was the resurgence of weddings and other events following the easing of COVID-19 restrictions. LK Bennett, known for its partnership with Royal Ascot, has been recognized as an Official Sponsor of the event. The return of occasion dressing had a particularly positive impact on the company’s dress category, contributing to approximately £1 million in profit.
In addition to benefiting from the event-driven market, LK Bennett has been focusing on expanding its retail presence in the UK. The brand recently opened a new store in Cheltenham, adding to its existing locations. Furthermore, LK Bennett has been investing in the upgrade of its current stores and has plans for international expansion. The company will be re-entering the US market through wholesale partnerships starting in the autumn.
CEO Darren Topp acknowledged that while the recovery from the pandemic played a significant role in the company’s performance, strategic actions taken over the past four years have also strengthened the underlying business. This includes the return of Linda Bennett, the founder of LK Bennett, who regained control of the company after it faced financial difficulties in 2019. At that time, Chinese company Byland, controlled by Rebecca Feng, acquired the brand. LK Bennett now operates over 100 locations globally, including the UK & Ireland, Europe, the US, and China, and sells its products through various retailers such as Selfridges, Galeries Lafayette, de Bijenkorf, and Brown Thomas.
With the fashion industry rebounding from the impact of the pandemic, LK Bennett’s success underscores the positive trend of consumers embracing occasion dressing once again. The brand’s strong financial performance and expansion plans indicate a promising future as it continues to cater to fashionable individuals worldwide.
Useful Links:
1. LK Bennett Official Website
2. Retail Gazette – LK Bennett Plots International Expansion
