Lacoste: Flagship London store fails to boost sales as label falls to loss
The opening of a flagship store in London’s Regent Street failed to stop the UK arm of sports fashion label Lacoste entering the red, it has been revealed.
The business has reported a pre-tax loss of £3.2m for 2023, according to delayed accounts filed with Companies House.
The results for the brand also show its turnover nudged ip from £69.9m to £70.1m over the same financial year.
The wider Lacoste group is headquartered in France and was founded in 1933.
A statement signed off by the board said: “Retail revenue from boutique and outlet stores showed a slight increase of 0.3 er cent versus 2022.
“A new Lacoste global flagship store was opened on Regent Street, London, in April 2023 elevating the brand positioning and highlighting the importance of the UK market to the Lacoste group.
“revenues from the wholesale channel were marginally down by 4.5 per cent, driven primarily by the economic backdrop and cost-of-living crisis resulting in lower footfall on the high street.
“However, the continued strategy to target mid-tier and top-tier wholesale customers also contributed to premiumise the brand.
“Despite the difficult economic environment and general decline in footfall, the margin rate remained flat versus 2022 at 44 per cent.”
The results for Lacoste come after rival Castore, the British sportswear brand backed by the likes of Sir Andy Murray and the billionaire Issa brothers, slumped to a loss despite its sales jumping by £75m.
The Manchester-headquartered business reported a pre-tax loss of £28.8m for the year to 4 February, 2024, according to accounts with Companies House.
The loss comes after the brand posted a pre-tax profit of £14.6m for its prior 12 months.
However, the results also showed its turnover surged from £115m to £190.3m over the same period.
Castore’s accounts show that it incurred exceptional costs of more than £24.4m in the year which pushed it into the red.