Danish fashion retailer Bestseller has released its latest annual results, showcasing a positive growth in its top line despite challenging market conditions. For the 2022/23 financial year, the company witnessed a 5% increase in turnover, with wholesale, retail, and e-commerce revenue reaching DKK37 billion (€4.9bn/£4.3bn/$5.2bn). Retail revenue specifically experienced a significant growth of 11%. However, there was a decline in profits before tax, falling from DKK6.085 billion to DKK4.944 billion, as well as a decrease in net profit from DKK5.143 billion to DKK3.913 billion.

Bestseller, known for owning popular brands like Jack & Jones, Vero Moda, Only, and Selected, had previously anticipated challenging conditions for the upcoming financial year. This prediction proved accurate as the company faced various obstacles. While its physical stores, comprising over 2,100 locations, showed positive signs and promising performance, online sales experienced a decline for the first time.

Despite the difficulties, Anders Holch Povlsen, CEO and owner of Bestseller, acknowledged the demanding year and praised the efforts of his colleagues in navigating through the challenges. The company absorbed a substantial portion of the increasing costs, affecting the overall financial result. Bestseller has consistently invested in its operations, particularly focusing on digitalization, new facilities, and alternative business models. These investments aim to contribute to the necessary transformation of the fashion industry.

Looking ahead, Bestseller plans to continue its investments in the current and upcoming years. Additionally, the company has announced the construction of a new state-of-the-art distribution center in the Netherlands and the expansion of multiple brands’ retail networks. Bestseller remains committed to sustainability and has achieved an impressive 82% reduction in direct CO2 emissions since 2018. Initiatives include the establishment of a solar power plant through its parent company and partnerships with logistics firms to implement more CO2-neutral freight solutions.

Despite the impact on earnings, Bestseller maintains an optimistic outlook for the future. The company’s enhanced top-line performance has instilled motivation and confidence, fueling further business development, technological advancements, and the circular transformation of the fashion industry. With its steadfast commitment to sustainability and investments in innovative solutions, Bestseller is well-positioned for future growth and success in an evolving market.

Useful links:
Bestseller Official Website
Bestseller Sustainability Initiatives