Ann Summers slipped further into the red as it battled “significant external pressures” including the cost-of-living crisis, rising inflation and Google’s safe search restrictions.
The retailer fell to a pre-tax loss of £13.1m for the year to 29 June, 2024, after it also made a loss of £3.8m in the prior 12 months.
Newly-filed accounts with Companies House also show that the firm’s turnover declined from £104.5m to £93m over the same period.
The business said it had invested almost £7m over the financial year in a bid to return to growth.
Ann Summers’ turnover in the UK fell from £100.6m to £89.7m in the year, from £3m to £2.8m in the rest of Europe and from £919,882 to £503,231 in the rest of the world.
The company ended the financial year with 80 stores in the UK, down from 85. However its headcount rose from 1,114 to 1,180.
The last time Ann Summers reported a pre-tax profit was the £6.6m it achieved in the year to June 2021. Since then it has racked up a pre-tax loss of around £40m.
Ann Summers battles Google safe search
A statement signed off by the board said: “The financial year 2023-24 has been a challenging yet transformative period for Ann Summers group.
“Despite facing significant external pressures, we have made strategic decisions to position our business for future growth and resilience.”
Ann Summers added that its trade was “notably impacted” by inflation and the cost-of-living crisis “coupled with a tumultuous political landscape which affected consumer confidence and discretionary spending”.
The company also said its web sales “remained stable, despite challenges advertising online due to Google safe search restrictions and Meta blocking issues”.
Ann Summers pointed to its third-party partnership with Asos as being “one of the standout successes of the year”.
Investment aimed at returning to growth
The business added: “Despite the tough trading environment, we have continued to support the strategic growth of the business, investing £6.8m within the period.
“During the year we invested heavily in delivering large-scale strategic projects, which launched just after the period ended.
“We launched our brand new website Knickerbox which helps overcome our limitations from Google safe search.
“Alongside this, we made significant investments in technology, including implementing a new product information management platform, which has streamlined our operations and enhanced our customer experience alongside improving our delivery and fulfilment capabilities.”
On its future, Ann Summers said: “We are committed to continuing our investment in growth and transformation.
“We have a clear strategy in place to navigate the current economic challenges and emerge stronger.
“Our focus remains on driving profitability through strategic partnerships, enhancing our online and in-store experiences and maintaining disciplined approach to cost management.”