Annual turnover increases but profit drops at Anders Holch Povlsen's company Bestseller
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Anders Holch Povlsen has seen his Bestseller company increase its annual turnover but its profits have dropped.
In the financial year 2022/23, Bestseller managed to increase its turnover by 5 percent to 5,973 million euros, (£5173.45 million) while the result before tax totalled 664 million euros (£575.12 million), 19 percent lower than last year.
The Danish fashion company, which has 20 brands including Jack & Jones, Vero Moda and Only in its portfolio, said in a statement that the overall result indicated that the year was characterised by a changed and challenged market.
“We are far from immune to turbulent times, but I am pleased that we have navigated the increasing costs and provided our partners and customers with opportunities. We have chosen to absorb a significant part of the costs, which is reflected in the overall result,” said Mr Povlsen, CEO and owner of Bestseller.
The company added that the performance of brick-and-mortar stores, including 2,100 owned by Bestseller and partner-owned stores, contributed positively to the result and showed promising signs, but overall online sales saw a decline for the first time.
The company continued to invest in a wide range of strategic business initiatives, digitalisation and new facilities as well as in business models, materials and technologies aimed at contributing to the necessary transformation of the fashion industry.
Bestseller intends to continue these investments in the current and upcoming years. For example, the fashion company will open a new high-tech distribution centre in the Netherlands during the ongoing financial year, and several of the company’s brands will expand their retail networks.
“In recent years, we have seen significant changes, and we expect continued market uncertainty. We will do our best to address it, and we will invest to be ready. We aim to be well-run, humble, and equipped with the means and technologies needed to keep growing and achieving our ambitions,” added Mr Povlsen.
The company will also continue to invest in sustainability initiatives. Since 2018, Bestseller has reduced its direct CO2 emissions by 82 percent, partly by establishing a solar power plant through its parent company and entering agreements for more CO2-neutral freight with several of its logistics partners.
Also, the company has invested more than 150 million Danish krone (£17.4 million) in the earliest stages with innovators who are developing the materials of the future.
Mr Povlsen is also Scotland's largest private landowner with 220,000 acres.
He is ranked the richest person in Scotland in the latest published edition of the Sunday Times Rich List in Scotland.
He comes in 17th on the overall UK Rich List this year, with a valuation estimated at £8.5 billion - up £2 billion from £6.5 billion in 2022.
