Premium womenswear retailer Karen Millen has reported a fall in profits after investing in the business.
Karen Millen’s full year EBITDA declined from £15m to £13.5m in the year to March 2. The retailer invested £2m in “people, processes and technology” in the year.
Karen Millen was spun off from former parent company Aurora in 2011 and since then the brand has had to invest in its own infrastructure to support the business. A Karen Millen spokeswoman said this investment “really kicked off” in the last financial year.
Sales were flat at £260m.
The retailer opened 35 new stores in the year, including in Beijing and Kiev. Overseas sales now account for 65% of group turnover and Karen Millen trades in 58 countries.
Karen Millen plans to open 40 shops in 2014, including a flagship on New York’s Fifth Avenue.
Online sales at the retailer jumped 93% between 2009 and 2013.