Seasalt, the fast-growing Cornish lifestyle brand, today announces its financial results for the year ended 30th January 2021 and provides a trading update for the current financial year.
- Online sales grow significantly above expectations, stores rebound strongly after re-opening
- Improvements in EBITDA margin through cost control and commitment to full-price trading
- Annual sales approaching £100m in year ending 29th January 2022 with strong momentum across all channels
Online sales increased by 72% in the year ended 30th January 2021 compared with the year ended 1st February 2020, reflecting the strength of Seasalt’s digital transformation programme and its innovative marketing strategy. Sales through digital channels accounted for 67% of total revenue over the period and continue to represent the majority of revenue.
Temporary shop closures enforced by Covid-19 throughout 2020 and in early 2021 caused Seasalt’s store sales to decline by 57%. Since reopening, the stores have recovered more quickly than expected and continue to trade ahead of expectations. The stores remain core to Seasalt’s customer experience proposition and are proven to drive sales across all channels.
Total sales in the year ended 30th January 2021 were £69.9m, down 7% on the previous year. EBITDA in the same period was £6.6m, an increase of 50% year-on-year as the business focused on profit improvement and a full-price trading strategy.
Driven by growth across all channels, total sales in the year ending 29th January 2022 will approach £100m, with 56% of sales now made online. In the current financial year, Seasalt has expanded its work with strategic partners including Next, Zalando and Amazon US. The brand launched online with M&S in April 2021 and in M&S stores from June 2021.
Seasalt has invested more than £2.5m in new technology in the past 18 months, including new UK and international websites and industry-leading software that allows online orders to be fulfilled in stores. The investment in technology, along with innovative marketing and Seasalt’s long-standing commitment to sustainability, has contributed to record levels of customer acquisition in the current financial year.
Paul Hayes, Seasalt CEO, said: “Our outstanding results in the face of extremely difficult circumstances reflect the hard work of our teams across the business and the support of the wider Seasalt community.
“We have seen the benefits of our digital transformation and can now genuinely call ourselves a digital-first brand. The excellent performance of our stores since they re-opened and growth with our strategic partners point to a bright future and demonstrate the resilience of the business.
“As we move towards Christmas, it is an exciting time for Seasalt as we continue to experience record levels of engagement with our customers and look forward to building further momentum through the rest of the year.”