Tory Burch UK’s retail sales rise but gross margins dip

Tory Burch UK’s retail sales rise but gross margins dip

Tory Burch UK has filed its latest results with the company that operates the UK and German businesses for the American label saying that turnover rose by as much as 70.7% in the year to the end of December 2022.

Turnover jumped to £24.4 million from £14.3 million a year earlier, although rather than indicating a huge sales rise it was reflective of the “full-year benefit of transferring the UK e-commerce operations to the company in the previous year”. That said, sales were higher in the group’s retail stores during 2022. But gross margins fell slightly from 64.3% down to 63.5%.

Administrative expenses also increased by 73.2% to reach £15.1 million, “primarily reflecting the impact of the improved performance of the group, which resulted in lower market support payments received during the year”, as well as a full year of expenses related to its e-commerce ops and UK distribution centre.

At the end of the period in question, the company operated three full-price stores in the UK and one in Germany, as well as one outlet store each in Britain and Germany. It also set up the aforementioned distribution centre in the UK during 2021 because of Brexit and transferred its e-commerce operations to the country. Pos-period-end, the company shut one UK retail store during 2023 but didn’t expect the closure have a significant impact on its operations.

Meanwhile, profit before tax fell to £454,000 from £894,000 in the previous year, and net profit dropped to almost £342,000 from nearly £737,000.

As is usual, the firm didn’t offer any commentary on its results, or detail on how it fared and what has happened since, so it looks like we might need to wait until this time next year to see how 2023 went.

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