Ann Summers returns to profit in 2021, sales up 9 percent

Ann Summers has revealed it swung to a profit last year as it underwent a restructuring by way of a company voluntary arrangement (CVA).

The British lingerie retailer said it made a “meaningful return to profit” in the year to June 2021, full details of which it said will be shared later this year at Companies House.

In the same period, the company’s sales increased 9.3 percent year-over-year to 113.8 million pounds.

It comes after Ann Summers managed to reduce its EBITDA loss to 7.2 million pounds in the year to June 2020, compared to a loss of 11.3 million pounds in 2019.

Like other fashion retailers, Ann Summers was impacted by store closures during multiple lockdowns over the past two years. But it said “sales growth has been positive” since reopening.

Its online sales almost doubled between 2019 and 2021 as the pandemic saw shoppers shift to online channels.

‘Well placed for recovery’

In terms of recent trading, for the first 27 weeks to January 1 2022, sales were up 6.7 percent year-over-year and up 16.9 percent year-over-two-years.

However, it added that high street footfall was impacted immediately before Christmas amid a fresh wave of Covid infections, and so its outlook remains “uncertain”.

“I am delighted that Ann Summers has emerged after some very challenging years with a return to profitability in 2021,” CEO Jacqueline Gold said in a statement.

“While the external environment remains uncertain, we are well-placed to continue our recovery,” she said.

The return of the business to profitability combined with a “strong funding position” means Ann Summers will exit the CVA it launched at the end of 2020 to restructure its store estate.