Lingerie retailer Bravissimo took a hit to its pre-tax profits in 2010 following investment in the launch of womenswear fascia Pepperberry.
The retailer, specialising in lingerie, swimwear, nightwear and clothing for women with a larger bust size, saw its pre-tax profits dip from £430,051 to £46,224 over the financial year ended August 31, 2010.
This was due to investment in product buying and marketing ahead of the Pepperberry launch in March this year.
The first Pepperberry stores opened in Aberdeen and Edinburgh in February and a further 13 Bravissimo/Pepperberry dual-branded stores opened a month later.
The company’s revenue increased 1.2% from £44.4m in 2009 to £45m in 2010, while profit margins rose to 35.8% from 35.5% on the previous year.
Sarah Tremellan, who co-owns the company with her husband Mike, said it expected to recoup the losses in this financial year. “So far, it is looking like we will be significantly more profitable this year.”
Further money has been spent in this financial year on the new Pepperberry store openings and the dual-brand refits.
Tremellen said trading had been tough in the current financial year, which ends in August, particularly during the bad weather around Christmas, but that sales since then had been encouraging and should cover that loss.