In a noteworthy financial disclosure, vintage-inspired womenswear brand Rixo reports impressive nearly double-digit sales growth for the year ending July. Despite facing the challenges of the pandemic, particularly with its occasionwear focus, Rixo’s first full year without Covid disruptions marked a period of significant recovery and growth, with sales reaching £19 million, up by 9.1%.
However, higher administrative expenses, notably a one-time expenditure of nearly £536,000 linked to store openings, impacted Rixo’s operating profit and pre-tax profit, declining to £2.3 million from £4.5 million. Although tax reductions improved overall figures, the net profit for the period was £1.8 million, down from £3.6 million in the prior period.
Throughout the year, Rixo strategically emphasized building brand awareness, evident in the opening of new stores and increased investments in digital and brand marketing. Key additions to its store portfolio, including a flagship store on London’s King’s Road and a West End location on Carnaby Street, are anticipated to serve as pivotal sales drivers, despite incurring one-time pre-opening costs exceeding half a million pounds.
Brexit-related challenges impacted Rixo’s distribution costs, prompting plans to establish a distribution center for EU sales in the upcoming financial period, mitigating administration, duties, and tax-related costs.
Looking ahead, Rixo plans to bolster brand awareness in its key UK market and identify international opportunities by leveraging existing brand awareness from wholesale trading partners. Expansion of the retail store portfolio is on the agenda, targeting strategic locations both domestically and internationally. Concurrently, Rixo aims to enhance e-commerce activity through a synergistic mix of paid and organic marketing.
The brand’s wholesale business will concentrate on nurturing its existing UK customer base and extending its footprint into international markets. This strategic approach involves leveraging localized agencies and targeting brand partners in key countries.
Despite challenges, Rixo remains optimistic about its growth trajectory, underlining strategic investments and a steadfast commitment to building a globally recognized brand.
