Ann Summers back on track after tough three-year turnaround

By

Nigel TAYLOR

Published
Feb 1, 2022

Rising sales and a return to profit have ensured Ann Summers no longer has to operate under the shadow of a 13-month company voluntary arrangement (CVA).

After a tough pandemic, a three-year turnaround strategy, underpinned by a strong online focus, has now given the lingerie and sex toy retailer a strong platform for growth.

The 91-store group said 90% of creditors had agreed to the CVA and the business can now press ahead with a reorganisation that will see 25 more of its stores move to turnover-based rental agreements.

At the same time, Ann Summers also said an additional £10 million in funding had been made available to the retailer to continue with its turnaround plans.

And its progress was also reflected in its latest accounts filed at Companies House. The business saw its EBITDA loss cut to £7.2m in the year to June 2020, from an EBITDA loss of £11.3m in the year to June 2019. Then, over the the year to June 2021, Ann Summers said it has returned to profit, although no figure was given.

Meanwhile, sales rose 9.3% to £113.8m in that latter period. And sales in the first half of the current financial year (the 27 weeks to January 1) continued to rise, up 6.7% on the previous year and 16.9% on two years ago.

But it wasn’t all plain sailing as it also admitted high street footfall was affected immediately before Christmas with “greater customer caution given increasing levels of Covid”. That means the outlook on the store front “remains uncertain”.

But with the business now trading on that wider platform, overall sales success is being driven digitally, with online numbers almost doubling (again no figures available) at the specialist retailer, allied to its direct sales arm which also more than doubled its revenues. 

CEO Jacqueline Gold said it’s now “a true multichannel business with powerful online capabilities combined with a rightsized store portfolio… and our unique army of direct sales ambassadors.”

Ann Summers also noted that its improved performance reflected a focus on “product ranges, quality and fit, investment in its digital platforms and other systems”.