Lovehoney reported pre-tax profits up by 68 per cent in its latest financial year. This is in large part driven by the increasing mass-market appeal of the sex toys it sells online – led by its exclusive Fifty Shades Darker licensed ranges.
The retailer said sales of £58.1m in the year to the end of March 2016 were 29 per cent up on the £44.9m reported at the same time last year, while pre-tax profits of £5.1m were 68 per cent up on the £3.1m reported last time.
During the year, the retailer expanded in Australia and America, lifting global staff numbers by 25 per cent, from 171 to 214. Localised websites serve customers through site specific deals, offers, and are supported with a strategy of opening overseas fulfilment centres. In both the UK and non-UK markets, the retailer focused on improving own-brand Lovehoney sales.
In the UK, improvements to the lovehoney.co.uk website included making it easier to use on mobile devices.
Unveiling full-year results, Longhurst said, “We have enjoyed another record year and we expect the new Fifty Shades Darker movie coming out in February to be a significant sales driver. We are incredibly proud that a start-up business in the South West has risen to international prominence. Amid the current political climate, Lovehoney is well-positioned to continue its international expansion and we feel confident that the business will continue to thrive.”
Plans for the next year include using TV advertising to capitalise on the interest in sex toys sparked by the Fifty Shades Darker movie which is released globally around Valentine’s Day next year.