Despite pressure on top-line revenue, bottom-line profitability improved, primarily due to normalisation and efficiency gains in the company’s logistics operations. As a result, profitability increased by 8 per cent.

“We are satisfied that we were able to deliver a strong profit but humbly acknowledge that top-line growth will be required going forward. Our strength as a multichannel fashion company, combined with the hard work put in by all colleagues, provided the ability to deliver results under difficult circumstances. This gives the opportunity to invest in building an even stronger foundation, which we are continuously determined to do,” said Anders Holch Povlsen, CEO and owner, Bestseller.

Although new demands are facing the fashion industry, Bestseller continued to adapt its business including in retail expansion, with the opening of new stores in existing and emerging markets, and in the technology platforms which underpins the company’s operations.

In 2023-24, sales across retail channels increased by 5 per cent, and the company opened more than 330 new stores, bringing the total number of stores to over 2,800. This included expanding existing stores as well as moving stores to bigger and more suitable locations. Bestseller expects to intensify its focus on retail stores and expansion in the coming years.

“In recent years, we have seen strong, positive progress in our retail stores.  We have focused on creating the best experiences for shoppers by optimising our collections and opening bigger stores in the best locations. In the coming years, we will ambitiously expand our retail presence,” said Anders Holch Povlsen.

Similarly, Bestseller will continue to invest in – and address – the sustainability challenge affecting not only the fashion industry but societies at large. 

Fiscal 2023-24 marks the first time Bestseller reports the amount of greenhouse gas emissions from its operations during its financial year. The results indicate that while the company has begun to decouple emissions relative to its growth, the current trend indicates that more action is needed for the company to reach its climate goals.

Bestseller will significantly increase its investments in, among other initiatives, increasing the volume of products made using preferred materials, including organic cotton and recycled polyester, scaling up collaboration across the supply chain to increase the pace of decarbonisation, and increasing reuse and recycling to extend product lifecycles, the company said in a press release.

“The long-term success of our business hinges upon achieving our financial, societal, and environmental goals. We recognise that despite progress in 2023-24, we are far from our desired outcomes. To succeed in decoupling commercial growth from our impact on the environment, we must and will increase our sustainability investments in the coming years. Through collaborative efforts we can collectively prepare the fashion industry for a more regenerative future, which respects planetary boundaries. This is our unwavering commitment,” concluded Povlsen. 

Fibre2Fashion News Desk (RR)