Seasalt predicts £100m sales
Cornish fashion brand Seasalt has is predicting turnover to hit £100m after online sales jumped and helped make up for lost revenue when the Covid pandemic forced stores to close.
Seasalt Cornwall were down 7% to £69.9m in the 12 months to 30 January 2021 year on year.
The closure of “non-essential” retail throughout 2020 and in early 2021 caused Seasalt’s store sales to decline by 57%. Since reopening, the stores have recovered “more quickly than expected and continue to trade ahead of expectations”.
The retailer said: “The stores remain core to Seasalt’s customer experience proposition and are proven to drive sales across all channels.”
Online sales increased by 72% in the year to 30 January. Sales through digital channels accounted for 67% of total revenue over the period and continue to represent the majority of revenue.
EBITDA in the same period was £6.6m, an increase of 50% year on year as the business focused on profit improvement and a full-price trading strategy.
Driven by growth across all channels, Seasalt expects total sales in the year to 29 January 2022 to approach £100m, 56% of which will come from online.
In the current financial year, Seasalt has expanded its work with strategic partners including Next, Zalando and Amazon in the US. The brand launched online with Marks & Spencer in April 2021 and in stores from June 2021.
Seasalt has invested more than £2.5m in new technology in the past 18 months, including new UK and international websites, and software that allows online orders to be fulfilled in stores. The retailer said this investment in technology, along with innovative marketing and its commitment to sustainability, has contributed to record levels of customer acquisition in the current financial year.
CEO Paul Hayes said: “Our outstanding results in the face of extremely difficult circumstances reflect the hard work of our teams across the business and the support of the wider Seasalt community.
“We have seen the benefits of our digital transformation and can now genuinely call ourselves a digital-first brand. The excellent performance of our stores since they reopened and growth with our strategic partners point to a bright future and demonstrate the resilience of the business.”