Tory Burch UK, the company responsible for operating the American label’s businesses in the UK and Germany, has announced a significant increase in its turnover for the year ending December 2022. The company witnessed a 70.7% rise in turnover, reaching £24.4 million. However, it is important to note that this increase can be primarily attributed to the full-year benefits of transferring the UK e-commerce operations to the company in the previous year.
While the group’s retail stores also experienced an uptick in sales, there was a slight dip in gross margins, which declined from 64.3% to 63.5%. Additionally, the company’s administrative expenses saw a noteworthy increase, rising by 73.2% to £15.1 million. This can be mainly attributed to the improved performance of the group, resulting in lower market support payments. Furthermore, the full year of expenses associated with e-commerce operations and the UK distribution center also contributed to this increase.
During the relevant period, Tory Burch UK operated three full-price stores in the UK and one in Germany, along with one outlet store in each country. In response to the challenges posed by Brexit, the company established a distribution center in the UK and transferred its e-commerce operations to the country in 2021. Although one UK retail store was closed in 2023, it is not expected to have a significant impact on the company’s operations.
However, despite the overall growth in turnover, the company’s profit before tax witnessed a decline from £894,000 in the previous year to £454,000. Net profit also experienced a drop from nearly £737,000 to almost £342,000. Unfortunately, Tory Burch UK did not provide any commentary or details on its results, leaving us eagerly waiting until next year to gather more information about its performance in 2023.
For more information regarding Tory Burch UK’s financial report, you can visit their website here. Additionally, to gain further insights into the fashion industry and its current trends, you can explore this article here.
