Bath-based adult toy retailer Lovehoney has seen its profits more than half following a fall in demand for its products. Posting its financial results for the year ending December 31, 2023, the online brand blamed a squeeze in consumer spending on its performance.
The company saw revenues fall to £101.2m from £121.8m the year previously and profit before tax drop to £12.8m from £29.6m.
“The 2023 year continued to see a very challenging environment and consumer climate with increasing interest rates and high energy costs really impacting the consumer and thus reducing demand for our products,” a statement on Companies House said.
“Within this environment the company focused on efficiency and profitability rather than trying to maintain the turnover. The directors have concluded that forecast trading, cashflow and profitability measures will be at least maintained for the foreseeable future.”
Lovehoney said the main risk to its success was the variability of consumer demand, which it aimed to mitigate by analysing its customers’ buying patterns.
The company reduced its workforce by 60 over the year to 328.
Like this story? Why not sign up to get the latest business news straight to your inbox.Richard Longhurst and Neal Slateford set up Lovehoney in Bath in 2002, with the firm merging with German competitor WOW Tech Group to form the Lovehoney Group in 2021.
The tie-up between the two businesses also included Amorana, a Swiss sexual wellbeing retailer acquired by Lovehoney in September 2020.
