Ann Summers has returned to profit as a result of its turnaround strategy, driven by strong online performance during the pandemic.
The lingerie and sex toy retailer has registered improved profitability over the past two years. Its EBITDA loss was reduced to £7.2m in the year to June 2020, compared with an EBITDA loss of £11.3m in the year to June 2019.
Over the year to June 2021, Ann Summers returned to profit, recording sales up 9.3% to £113.8m.
The retailer added that sales for the current year have continued to be strong, up 6.7% on last year and 16.9% on two years ago in the 27 weeks to January 1.
Between 2019 and 2021, online sales almost doubled at the specialist retailer, while its direct sales arm more than doubled its revenues.
Due to its successful turnaround, Ann Summers will now be able to exit the company voluntary arrangement (CVA) it entered into with landlords in December 2020.
Ann Summers chief executive Jacqueline Gold said: “I am delighted that Ann Summers has emerged after some very challenging years with a return to profitability in 2021.
“Everyone in the business has worked incredibly hard to deliver the turnaround and, while there remains much to do, I’m very grateful to every member of our team who has contributed to it. I’d also like to thank those landlords and suppliers who supported us through our CVA last year, which played an important part in helping us get back on track.
“While the external environment remains uncertain, we are well-placed to continue our recovery. We are now a true multichannel business with powerful online capabilities combined with a rightsized store portfolio – with the majority of stores now on variable turnover rents – and our unique army of direct sales ambassadors.
“We are determined to take advantage of the opportunities in today’s much-changed retail market and together we are looking to the future with confidence.”
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