Bestseller, the Danish fashion retail giant, has released its latest annual results, demonstrating resilience in a dynamic and challenging market. While profits faced a decline, as anticipated, the company remains optimistic, ready to channel its top-line growth into business development, technology advancement, and the transformation of the fashion industry towards sustainability.
In the previous year, Bestseller achieved record-breaking results but foresaw more challenging conditions in the upcoming financial year, and these predictions have materialized.
For the 2022/23 financial year, concluding in July, Bestseller reported a 5% increase in turnover, spanning wholesale, retail, and e-commerce, reaching DKK 37 billion (approximately €4.9 billion/£4.3 billion/$5.2 billion). Retail revenue witnessed an impressive 11% surge. However, profit before tax decreased to DKK 4.944 billion from DKK 6.085 billion the previous year, with net profit also declining to DKK 3.913 billion from DKK 5.143 billion.
While physical stores, including Bestseller’s nearly 2,100 locations and partner-owned sites, made positive contributions to the results and showed promising signs, overall online sales experienced a decline for the first time.
Anders Holch Povlsen, CEO, and owner of Bestseller, acknowledged the challenging year, stating, «As expected, it became a year that demanded a lot from all colleagues, and everyone deserves praise for the effort. 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.»
Bestseller continues to invest in its operations, focusing on digitalization, new facilities, and innovative business models, materials, and technologies aimed at propelling the fashion industry towards sustainability. In the ongoing financial year, the company plans to initiate construction on a cutting-edge distribution center in the Netherlands and expand the retail networks of several of its brands.
Sustainability remains a core commitment for Bestseller. The company has already achieved an 82% reduction in direct CO2 emissions since 2018, partially through the establishment of a solar power plant and agreements for more CO2-neutral freight with logistics partners. Bestseller is committed to doubling down on these sustainability initiatives, aligning with its dedication to environmental responsibility and green practices.
