The Fragrance Shop reports record full year sales
The Fragrance Shop has reported a 5.5% increase in its full year like-for-like sales after trade was driven by a range of big-ticket scents.
With 179 UK sjhops, the retailer’s total sales rose by 9.4% to a record £105 million in the year to end March as it continued to expand its store portfolio. Online sales also grew year-on-year, rising by 38%.
The Fragrance Shop’s underlying profit increased by 9% to £14.4 million in the period.
The retailer said sales of Dior’s Sauvage surpassed all expectations, while there was also high demand for other big-ticket scents, including fragrances from Boss, Gucci and Marc Jacobs.
During the year The Fragrance Shop opened 14 new stores. It plans to launch another 20 new stores in the current financial year and said it remains on track to open its 200th UK store during 2017.
The retailer, which employs just under 1,100 people, said trading had remained strong following the EU referendum vote.
Michelle Edmondson, retail director of The Fragrance Shop, said: “During another strong year of trading at The Fragrance Shop, we continued to grow both headline and like-for-like sales, increasing our market share in a highly competitive market.
“Trading has remained robust in the wake of the Brexit vote in late June and we are experiencing something of a ‘fragrance effect’ – in these uncertain times we believe people view fragrance as an accessible luxury. People may be foregoing extravagant purchases, but they can easily and affordably invest in a new fragrance to help them feel great.”
The Fragrance Shop said My Fragrance App, the ‘fragrance finder’ for smartphones launched last year, has been well received by customers.
It also reported strong take-up of its same-day delivery service, developed in partnership with Shutl, which lets customers order and receive their fragrance in as little as an hour.
Sanjay Vadera, chief executive of The Fragrance Shop, said: “Our offer has never been more compelling and our customers are telling us that they love our product selection, our service and advice and our multi-channel proposition, which includes our within-the-hour delivery service and personalised app.
“Our focus over the next year will be on bringing this combination to even more people as we approach 200 stores in the UK. We’re also confident of enjoying another successful Christmas, our key trading period of the year.”
The retailer said Diesel BAD and Hugo Boss’s The Scent Her are expected to be top-sellers this Christmas, alongside perfumes from Chanel, Viktor & Rolf and Dior.
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