International expansion coupled with localised delivery and customer service helped Lovehoney boost pre-tax profits and sales by more than a fifth in its latest financial year.
The Bath-based sex toys retailer has reported sales of £93m in its 2017/18 year, to March 31 2018. That’s up by 22% from £76m at the same time last year. Pre-tax profits hit £11m, up by 22% from £9m in the previous year. Sales have continued to grow at similar levels, it says, in the nine months since the end of the year.
The company, a Top250 retailer in IRUK Top500 research, said that sales growth had been “significant” in markets where it now has local fulfilment. It also saw strong demand for its own-brand proudcts, which include the official licensed Fifty Shades of Grey range.
Richard Longhurst, co-founder of Lovehoney, said the year had been a record one for the company. “Sales growth of more than two-thirds in two key territories of America [+67%] and Australia reflects our focus on international expansion as a key part of our global strategy. After opening our own distribution centres in Australia and the US last year, we now are able to tailor offers and deals to meet local demand, further fuelling our international growth.
“Our aim is to be the world’s best-known sexual wellbeing brand. We now have nine international websites in four languages served from three distribution centres. We are the ‘go to’ destination for people who want to discover a fun and fulfilling sex life. Our customers services in 24/7 and fluent in multiple languages so we’re on hand to help no matter where in the world you are.”
In June, private equity firm Telemos Capital took a majority stake in the retailer, founded by Longhurst and co-founder Neal Slateford. Telemos executive chairman Philippe Jacobs and chief executive officer Jacob Polny now sit on the Lovehoney board.
Image courtesy of Lovehoney