White Stuff has suffered a fall in full-year profits after ramping up investment in digital marketing and “higher than planned” levels of discounting.
The fashion business reported a 31.6% drop in EBITDA to £4.1m in the year to April 27, despite a 2.6% uplift in total sales.
White Stuff said it increased its investment into digital marketing and engaged in more promotional activity than anticipated, in a highly discounted fashion market.
It said it was also hit by “well-documented increases in costs due to external factors”. The retailer pinpointed pension auto-enrolment as one such cost that had an “adverse impact” on its bottom line.
White Stuff hailed its top-line growth, however, with ecommerce revenues up 8% year-on-year. Online sales now account for almost a third of its total sales.
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