Profit at adult retailer Lovehoney has been slashed in half as cash-strapped customers bought fewer sex toys, newly filed documents have shown.
The sexual wellbeing brand, which is headquartered in Bath, said the rising cost of living had led to a sharp drop off in sales in 2023, with revenue dipping to £101m from £121m in the previous year.
Lovehoney also saw its pre-tax profit more than half to £12.7m, down from £29.6m in the 12 months before.
The company shed more than 60 members of staff during the period, bringing its average monthly headcount to 328 from 389 in 2022.
In a statement published to Companies House Lovehoney said: “The 2023 year continued to see a very challenging environment and consumer climate with increasing interest rates and high energy costs really impacting the consumer and thus reducing demand for our products.
“Within this environment the company focused on efficiency and profitability rather than trying to maintain the turnover.
“Gross profit was £37.7m and as a proportion of sales decreased slightly to 37 per cent; as the year developed the company managed costs, and in particular marketing, closely to ensure that it was delivering the right return and to maintain the financial return as best as could be.
“Non-exceptional administrative expenses were £23.6m compared to £24.7m in the prior year, as the company tightly control expenditure during a period of reduced demand.
“EBITDA decreased to £17.7m, compared to £24m in the prior year, in line with the reduction of sales.”
How did Lovehoney’s rivals perform?
The adult toy and lingerie seller Ann Summers saw a 4.5 per cent increase in turnover to £104.6m for the year ended July 1, 2023, up from £100.1m in the 12 months before.
Its pre-tax loss also improved, falling to £3.7m from just under £22m in the year before.
The company behind online adult toy retailer Bondara saw a drop in sales in the year ended March 31, 2023, driving a reduction in turnover to £9.3m from £11.3 in the 12 months before.
Its pre-tax profit decreased to £2.1m during the period from £2.7m in the previous year.