Losses at the UK arm of premium French retailer The Kooples edged up by 3% in its last financial year despite turnover more than doubling.
In the year to August 31, 2012 losses at The Kooples UK, which has 24 UK stores, grew to £1.17m, up from £1.14m the previous year. However sales at the retailer grew to £15.21m, compared to £6.19m the previous year.
In the accounts filed at Companies House the company said: “The business has shown a strong start in our different locations and total sales have met our expectations. Nevertheless, the costs have been higher than anticipated mainly due to strong marketing and advertising expenses.”
It added that the gross margins are” not sufficient to guarantee the sustainability of the business model in the long term” and so the priority will be to negotiate better conditions with its main supplier.