Lipsy’s profit after tax grew by 155% to £4.6m in the year to January 24, as it continues its move into selling third-party young fashion brands.
The Next-owned womenswear brand and retailer increased turnover by 10% to £71.9m during the year thanks to increased sales on both the company’s own website and via the Next Directory.
Lipsy launched an online and mail order catalogue called Lipsy & Co in March, which features women’s young fashion and footwear brands such as Ravel, Little Mistress, Glamorous, Vero Moda and Vila, sold on a commission basis.
Sharon Fraser, sales manager at short-order womenswear brand Glamorous, said: “We have been doing really well with Lipsy and the sell-through is great and the product is shot really well. We were on a Next platform but moved over as Next focuses on the higher end product like Whistles and Michael Kors and Lipsy specialises in fast fashion.”
Third-party brands now account for 12% of Lipsy’s turnover and this is expected to rise. It is set to launch another publication for autumn next month with 100 brands, but no further details have been released.
Bank Fashion, which entered administration in January, was one of Lipsy’s major customers. Bank contributed £1.3m to Lipsy’s profit last year, but the company said it believes some of the lost turnover will be recovered through other channels and the rest will be made up through organic growth.
Lipsy made 88% of its £71.9m turnover in the UK, 4% in the rest of Europe and 8% in the rest of the world.
Next bought Lipsy, which has 57 stores and concessions in the UK and Ireland, for £17m in 2008.