Figleaves posts first ever profit

Fashion loungewear and underwear retailer Figleaves has posted its first ever profits. The company founded in 1998 by Daniel Nabarro posted a 2.5% increase in pre-tax profit to £97m in the year to March 3. Sales were up 4.8% to £753.2m.

In 2010 Figleaves was bought by N Brown, an online catalogue and shopping group, for a reported £11.5m. The sale and investment allowed the company to cut costs, focus on its own brand and branch out to other markets, including menswear and sleepwear.

Figleaves regularly attracts 1.2 million monthly visitors and it has seen a growth in customers between the ages of 30 and 50. The company stated sales to customers over 50 increased just 1% as many of them have fixed incomes and were particularly badly hit by rising food and energy costs.

The group said its “robust” performance was helped by lower prices and more special offers, while online sales grew 16% to £377 million, meaning they now account for half its turnover for the first time. Shares were up 7% on Tuesday.

The group said falling inflation should help consumer confidence to pick up in the second half of the year but it expects its markets to remain challenging.

The retailer plans to lower prices in the autumn and will drive key value lines as it invests in marketing strategies for fewer brands than usual as part of plans to win back “lapsed” customers.

Image: Figleaves