Lacoste UK's wholesale revenue soars due to new footwear distribution deal

Lacoste UK Limited saw a significant increase in turnover for the period ended December 31, 2024, with wholesale revenue up by 65.8 percent. This growth was primarily driven by a new sub-distribution agreement with Pentland Brands UK Distribution Limited (PBUKD), which made Lacoste UK the new distributor of Lacoste footwear for the UK and internationally starting with the Spring/Summer 2024 season. This new agreement, along with a wholesale strategy aimed at mid-tier and top-tier customers, helped to premiumise the brand.

Overall turnover for the company reached 98.14 million pounds in 2024, an increase from 70.19 million pounds in 2023. Gross profit also grew by more than 6.6 million pounds, reaching 37.68 million pounds in 2024, compared to 31.06 million pounds in the previous year. However, the gross profit margin rate declined by 5.9 points due to a change in the sales mix, with a greater proportion of sales coming from the wholesale channel. The company reported a loss for the period of 1.55 million pounds, an improvement from a loss of 3.22 million pounds in 2023.

Despite the growth in wholesale, retail revenue from boutique and outlet stores decreased by 6.5 percent, due to several store closures and a decline in footfall, which the company links to the current economic environment and cost-of-living crisis in the UK. The company also highlighted that the new footwear distribution agreement has exposed it to fluctuations in the value of the US dollar, which it mitigates through currency hedge contracts.

Lacoste UK is committed to developing and "premiumising" its brand by upgrading its retail network through a program of store refurbishments and relocations. The company has also implemented several employee-focused policies, including regular meetings to share business information, and a bonus and commission scheme to encourage involvement in the company's performance. The company operates a money purchase pension scheme for senior employees and offers life assurance to all employees in the scheme.

The company's directors have approved a two-year plan for 2025-2026, which focuses on strategic priorities and business risks while honoring its commitments to stakeholders. The plan has been communicated to all employees through town-hall meetings. The directors have confirmed that the company has a letter of support from its parent company, Maus Frères Brands Group SA, ensuring it can continue to operate as a going concern for at least 12 months.