LK Bennett, the luxury fashion brand loved by the likes of Catherine, Princess of Wales, has slumped into the red.
The London-headquartered retailer has reported a pre-tax loss of £3.1m for the 12 months to 27 January, 2024, according to newly-filed accounts with Companies House.
The loss comes after LK Bennett posted a pre-tax profit of £2.3m for the prior financial year.
Its results for its most recent financial year, which has just come to an end, are not due to be filed with Companies House until the start of November.
The new results also show that LK Bennett’s revenue decreased from £48.7m to £42.1m over the year.
A statement signed off by the board said: “The economic climate in the UK has been challenging with the global events contributing to increase [the] cost-of-living crisis and high inflation rates.
“The UK economy is currently experiencing a retraction, and given the heavy weight placed on the UK in LK Bennett’s store and web sales base, it is important that the company reacts to the marketplace and relevant changes in consumer spending as rapidly as possible.
“The company continues to review customer requirements and ensure the product range matches these expectations.
“LK Bennett’s product range continued to introduce new categories where relevant to the brand, as well as expanding the company’s available size range.
“While the company is not immune from headwinds associated with supply chain and distribution, our relatively local supply base does give some protection from those cost challenges.”
LK Bennett was founded in 1990 by Linda Bennett with its first shop in Wimbledon.
The brand fell into administration in March 2019 and was bought by Byland UK.
On its future, LK Bennett added: “Despite a challenging macro-economic environment LK Bennett remain cautious of the impact this has on our customers.
“The company continues to strengthen its brand, products and customer experience through reducing product prices and continues to seek growth opportunities in both physical and digital spaces through onboarding new partners and improved product range.
“The directors confidently believe the company is able to[to] address all the above issues and remain confident in both the company and the brand.”