Radley London has issued a warning about its future sales after slipping further into the red, according to newly-filed documents.
The company, which designs and manufactures luxury handbags, purses and other women’s accessories, has said it expects its wholesale turnover to decline as a result of some of its customers looking to reduce their stock levels.
However, the London-headquartered business said that sales in its global direct-to-consumer channels are expected to grow about the market rate.
Radley London, which was founded in 1998 by Lowell Harder, has just published its accounts for the year to April 29, 2023, six months after the Companies House deadline.
The results show that Radley London posted a turnover of £77.3m for the financial year, up from £75.7m, but that its pre-tax loss widened from £4.8m to £14.3m.
Radley London’s UK turnover dipped from £57.5m to £56m in the year but rose in Europe, the Middle East and Africa from £1.1m to £2.3m.
In North American its turnover increased from £14.2m to £16m and from £2.7m to £2.9m in Asia Pacific.
Radley London issues sales warning
Radley London is backed by private equity firm Freshstream while the likes of former CEO Justin Stead, CFO Jayne Worden and current CEO Nick Vance are also shareholders.
The firm’s accounts for its most recent financial year are due to be filed with Companies House by the end of January 2025.
A statement signed off by the board said: “The forward outlook from management remains cautious given macro events which have put pressure on costs and consumer confidence.
“Management’s focus is on elevating the brand and its product proposition as well as improving operational efficiency, whilst implementing strategic cost reductions to protect group profitability against risks in consumer demand.
“Sales in our global direct-to-consumer channels are expected to continue to grow above the market rate but demand in our wholesale channels is expected to decline as some partners look to reduce stock levels.”
During the year the average number of people employed by Radley increased from 434 to 477.