Radley & Co, the British handbag and accessories brand, experienced a significant boost in sales during the pandemic period. Despite the challenges posed by Covid-19, the company’s e-commerce, UK retail stores, and US business all bounced back, resulting in a turnover of £47.5 million for the year ending in April 2022, compared to £38.6 million in the previous year. Sales also jumped to £75.7 million from £48.7 million.
While the increase in sales is a positive sign, Radley & Co still recorded a pre-tax loss of £2.8 million, compared to a smaller loss of £1.1 million in the previous year. However, the company remains optimistic about its recovery from the pandemic. Its accounts demonstrate a robust emergence and recovery, with underlying EBITDA rising to £5.3 million from £2.8 million the year before.
Since the reopening of retail in the UK in April 2021, Radley & Co has been able to capitalize on its profitable store portfolio and enhanced digital offering. The brand’s UK retail stores experienced a strong recovery, with sales soaring 135%. The company also saw success in its digital offerings, both through its own webstore and retail partners.
In the US, Radley & Co’s business grew by 54%, driven by new drop ship channels, the opening of stores, and improved e-sales on its webstore. Radley & Co’s multi-channel, multi-country strategy has played a significant role in driving its growth. CEO Justin Stead highlighted the strong return to trading across all channels in the UK and increased market penetration in the US. The company has focused on digital channels, quadrupling its Amazon business in the UK and experiencing success on its own website. Its partnership with John Lewis has also been fruitful.
The US market remains a key strategic growth market for Radley & Co. The company opened its first two stores in the US during the pandemic period and has since opened six more in premium outlet malls. In international markets, Radley & Co is optimistic about its store in Batavia Stad mall outside Amsterdam and its partnership with Myer Australia.
Radley & Co also expects its lifestyle extensions, such as footwear and luggage, to continue growing. Footwear sales have been particularly successful, representing 3% of sales in full-price channels. The luggage business has also recovered well, with sales increasing by 125%.
Overall, Radley & Co’s strong sales performance and recovery from the pandemic demonstrate its resilience and ability to adapt to changing market conditions. The company’s investment in growth, focus on digital channels, and multi-channel strategy have been key drivers of its success. As Radley & Co continues to expand its presence both in the UK and internationally, it remains poised for further growth and success in the years to come.
Useful links:
– Radley & Co Official Website
– Radley & Co’s Partnership with John Lewis
