Pre-tax profits at Lovehoney rose by 22 per cent to £11 million following a record year, to 31st March, for the online retailer. Sales had risen by 22 per cent, from £76 million to £93 million, with international operations making a significant contribution. The business had made a significant investment in its supply chain and distribution to support its growing Australian and US business during the period which was rewarded by a 67 per cent increase in year on year sales from these territories.
Lovehoney co-founder Richard Longhurst said: ‘’This year has been our biggest year to date, with record sales and profit which are both up by more than a fifth. Sales growth of more than two thirds in two key territories of America and Australia reflects our focus on international expansion as a key part of our global strategy. After opening our own distribution centres in Australia and the US last year, we now are able to tailor offers and deals to meet local demand, further fuelling our international growth.
“Our aim is to be the world’s best known sexual well-being brand. We now have nine international websites in four languages served from three distribution centres. We are the ‘go-to’ destination for people who want to discover a fun and fulfilling sex life. Our customer services is 24/7 and fluent in multiple languages so we’re on hand to help no matter where in the world you are.”
Longhurst added: “We have had some huge successes and great moments in our history but we’re not resting on our laurels. We are constantly looking to build our own brand products to ensure that we’re not relying on third parties to come up with new products. By creating our own products, we can ensure that customers know they’ll always get the best innovation and quality, and at a fair price.”
In June, private equity firm Telemos Capital invested in the business and acquired a majority stake from Longhurst and co-founder Neal Slateford. The pair continue to lead day-to-day operations at Lovehoney’s Bath HQ with Telemos’ Executive Chairman Philippe Jacobs and Chief Investment Officer Jacob Polny on the Lovehoney board.
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