Rixo, the vintage-inspired womenswear brand, has experienced significant sales growth for the year ending in July, with a notable 9.1% increase in sales, resulting in £19 million in revenue. However, the company’s profits took a hit due to higher administrative expenses, primarily driven by the opening of new stores. This led to a decline in both operating profit and pre-tax profit compared to the previous year. Although Rixo paid less tax, its net profit for the latest period remained lower than the previous 12 months.
To strengthen their brand presence, Rixo concentrated on expanding their physical retail footprint throughout the year. They successfully launched flagship stores in prominent London locations like King’s Road and Carnaby Street. While these store openings incurred substantial costs, they are expected to generate future sales growth for the company. However, the firm also faced challenges with distribution costs stemming from Brexit, including administrative fees, duties, and taxes that impacted sales to European Union countries. Rixo has devised a plan to address this issue by establishing a distribution center specifically catered to EU sales in the upcoming financial period.
Looking ahead, Rixo has outlined several strategies to drive their future growth. They plan to further expand their retail store presence in both domestic and international markets. Simultaneously, the company will invest in e-commerce activities, utilizing paid and organic marketing tactics to enhance their online presence. Rixo aims to bolster brand awareness in the UK market and seek out international opportunities by leveraging their existing wholesale trading partnerships. Moreover, they intend to focus on their UK customer base for the wholesale segment while actively developing international markets through localized agencies and strategic brand partnerships in key countries.
For further information about Rixo and its products, please visit their official website: https://www.rixo.co.uk/. Additionally, to stay updated on the latest news and developments in the fashion industry, visit https://www.voguebusiness.com/.
