Luxe, the jewellery retail group formerly known as Taste, plans to open new stores and ramp up its online platform after a rise in demand of its products.
Over the past year, the company shifted its focus from fast foods to jewellery and owns brands such as Arthur Kaplan. Luxe said there has been a strong demand for its watches and jewellery, and in the second half of its financial year to end-February there was a spike in online sales.
“Our strategic priorities are to grow revenue, profit and return on capital employed through continued investment in and elevation of our store portfolio, organic new store opportunities and new revenue streams,” group Luxe CEO Duncan Crosson said in a statement.
He said the goal “is to increase our footprint in underrepresented regions, however fully mindful of assessing the viability of locations based on appropriate criteria and leasing considerations.”
Crosson said the Covid-19 pandemic has created a “more fluid environment in which opportunities are likely to emerge.”
In the year to February, the group’s revenue was down 21% to R361.9m. Total comprehensive loss decreased to R36.525m from R436.9m.
Luxe said the second half of its financial year was significantly better than the first, when stores were closed between the end of March to May 31, resulting in an estimated R73m in lost sales. Same store sales for the second half of the year improved by 1% to R238m.
The group said demand for its luxury watches and jewellery has remained strong with more customers buying online. Online sales growth climbed 236% from 174% on a comparable basis.
“Our growing online business, the breadth of our product offering and the fact that community and neighbourhood store locations have outperformed major regional shopping nodes helped mitigate the effects of the pandemic on trade,” said Crosson.
The shift in consumer behaviour to online shopping, is a trend that Crosson said would continue to be an “important focus and driver of sales” in areas where Luxe Holdings does not have a physical presence, as well as a means of providing an easy convenient modern shopping experience and alternative safe option for new and existing customers.
The jewellery and watch division’s operating profit improved by 38% to R16.9m.
A strong recovery in the second half resulted in operating profit improving R22.6m from an operating loss of R5.7m at half year to a full-year operating profit of R16.9m.
The company generated R8.3m in cash from continuing operations thanks to prudent management of costs and working capital, specifically inventory and creditors. The share price closed unchanged at 105c.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.