Turnover at young fashion business Lipsy fell 4.2% year on year to £68.9m for the 53 weeks to January 30 as it grappled with the loss of one of its biggest accounts.
Operating profit was down 6.6% to £6m, while profit after tax for the year fell 6.5% to £4.3m. Its pre-tax profit dropped 7.4% to £5.4m.
The business said it had performed in line with expectations “despite the loss of a major wholesale customer”. Drapers understands this was JD-owned young fashion chain Bank, which collapsed into administration in January 2015.
Trade in the UK last year proved challenging for Lipsy, as domestic sales fell 6.6% to £59.3m, documents filed at Companies House show.
The international side of the business fared better. Sales in the rest of Europe were up 22% to £3.3m, while sales in the rest of the world were up 10.7% to £6.2m.
Lipsy said that it was confident that, with the continued “financial and operational support” provided by parent company Next, it will continue to develop in the years ahead.
As reported by Drapers last month, Lipsy is aiming to rival Asos through its online young fashion branded offer, Lipsy & Co, which stocks more than 150 brands, including Boohoo, Glamorous and Fashion Union.
The business said it wants to become the “new branded destination” for women.
Sales of third-party brands accounted for 23% of the total in the year to January 30, up from 12% in 2015, the new documents show.