Radley & Co, the renowned British handbag and accessories brand, has reported impressive sales growth in its full-year results for the period ending in April 2022. Despite incurring a pre-tax loss of £2.8 million, the company witnessed a significant increase in turnover from £38.6 million to £47.5 million and a surge in sales from £48.7 million to £75.7 million. This success can be attributed to Radley’s investments in digital growth as well as its resurgent UK and US store business.

During the reopening of the UK retail sector in April 2021, Radley capitalized on its profitable UK store portfolio and an enhanced digital offering, both through direct-to-consumer channels and retail partners. Additionally, the company’s US business experienced remarkable growth with sales increasing by 54%. This growth can be attributed to the implementation of new drop ship channels, the launch of physical stores, and improved e-sales on its own webstore.

Radley & Co comprises several operating units. Radley & Co Ltd handles the brand’s wholesale distribution in the UK, Europe, and Asia, in addition to operating the global e-commerce platform in 39 countries. Sales for this unit witnessed a 19% increase year-on-year and accounted for 41% of all external group sales. On the other hand, Radley Retail Ltd manages the brand’s physical stores in the UK, which witnessed a staggering 135% increase in sales and contributed 41% of all external group sales. Radley USA, which accounted for 17% of external group sales, witnessed a 58% growth in annual sales primarily due to market penetration through digital and direct channels.

Justin Stead, the CEO of Radley, credited the company’s success to its multi-channel, multi-country strategy. He emphasized the strong return to trading across all channels in the UK and the increased market penetration in the US. Radley’s strong digital focus led to a fourfold increase in its Amazon business in the UK, and its partnership with John Lewis outperformed previous years.

The company’s global direct-to-consumer (DTC) strategy accounted for 69% of its global sales, up from 65% the previous year. Radley’s emphasis on digital drop ship strategy allowed it to expand its product offering and attract new customers. In the US, the brand opened its first two stores in Las Vegas and Palm Springs, with plans to open six more in premium outlet malls.

Internationally, Radley opened a store in the Batavia Stad mall in Amsterdam during the lockdown. While this store has not yet reached its full potential, the company remains optimistic about the European market. Radley has also witnessed success with its partnership with Myer Australia, with shipments to the retailer increasing by 67%.

Radley also foresees growth in its lifestyle extensions. Its footwear business has experienced significant success, representing 3% of sales in full-price channels. The luggage business is also recovering well, with a remarkable 125% increase in sales, and watch sales in retail channels increased by 68%.

Overall, Radley’s full-year results showcase its strong emergence and recovery from the pandemic. The company’s investments in digital growth and its successful multi-channel strategy have driven its sales and positioned it for further growth in key markets.

Useful links:

– Radley & Co official website: https://www.radley.co.uk/
– John Lewis official website: https://www.johnlewis.com/