Luxury department store Liberty has posted a pre-tax loss of Ā£6.4 million, largely as a result of the cost of rolling out its Liberty of London brand.
Liberty's total group revenue increased toĀ£45.8 million in the year to December 31 fromĀ£44 million the previous year. Pre-tax losses deepened fromĀ£2.3 million the year before.
Sales at Liberty's iconic London flagship store were up 2 per cent toĀ£38.3 million.
The best performing part of LIberty's flagship was menswear, where sales jumped 18 per cent toĀ£4.6 million. Sales at its gifts division climbed 14 per cent and beauty was up 4 per cent. Ladies and home generated āoverall lower salesā during the year, according to Liberty.
Liberty of London sales rose 8 per cent toĀ£3.2 million. LIberty is planning to open its standalone Liberty of London store on Sloane Street this summer.
Liberty chairman Richard Balfour-Lynn said the year had been āa story of two halvesā, with the second half hit by the impact of the credit crunch at the same time as the retailer began a management restructure, during which chief executive Geoffroy de La Bourdonnaye joined on July 1.
Balfour-Lynn added that aĀ£3.5 million investment in Liberty of London had affected the profit and loss account over the short term. A cost ofĀ£2.7 million for re-organisation meant that EBITDA for the year was a loss ofĀ£3.6 million against last yearāsĀ£500,000 loss.
He said: āThe board is confident that Liberty has the structures, products and people to produce an improving platform for growth in the current year.ā
Liberty will launch a transactional web site in June and explore initiatives to widen its customer base.
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