Radley FY24 sales drop amid ongoing transformation strategy, US growth remains priority
British accessories brand Radley reported a 7 percent drop in total sales for the year to April 27, 2024, after softer performance across global wholesale partners counteracted efforts under its ongoing transformation strategy.
Total sales for the period dropped from 77.3 million pounds to 72 million pounds, while its underlying EBITDA also fell from 4.3 million pounds to 2.7 million pounds. This was largely driven by a 30 percent decrease in global wholesale sales, reflecting what the company said was 'partnerships moving towards dropship and marketplace models'.
In contrast, Radley's direct-to-consumer sales welcomed a like-for-like growth of 3.8 percent, backed by strong DTC performance in the UK, at 3.7 percent growth, and the US, where LFL sales rose 4.7 percent. Digital sales led the way in this respect, up 10.3 percent on the year prior, while store sales were more modest at 0.4 percent growth.
Radley enacted a transformation strategy which has since taken shape in three key pillars: Leadership and Talent, Technology and Product Development. A notable element of the strategy is the company's licensing model, which saw revenues rise 8 percent to 1.4 million pounds, and thus remains an important growth driver for Radley's non-core categories. YoY sales drop in US as wholesale demand softens
Likewise, the US is to also stay a priority for Radley, with expansion there overseen by Sara Wallace, who joined the company as commercial director in September 2024 in order to establish partnerships with retailers like Nordstrom and Dillard's. Radley said it was to now focus on the brand's US digital business and continued expansion of its partnership channels in the region.
Notably, Radley USA LLC, the company's wholly owned subsidiary of its core group Radley+Co Limited, contributed 17 percent to overall sales, down from 20 percent in 2023. Sales in the region fell 19 percent on the year prior, despite website sales growing 50 percent. Radley said the performance was due to the closure of three unprofitable stores and the underperformance of wholesale partners.
Radley is to further evolve its product proposition, an initiative that began in FY24 and will be accelerated in FY25 under Fernando Soriano Iglesias, whose first full-led collection will drop for autumn/winter 2025. His designs will fall alongside Radley's emphasis on extending accessory categories, such as its new beauty license, meaning the product and design team are targeting LFL and non-LFL growth in the coming year.
In the report, issued with the UK's Companies House, Radley did recognise that the retail climate in the UK and US represented a key risk due to the 'continuing impact of the cost of living pressures'. 'Our ongoing forecasting activities take into account a range of scenarios in this respect and their impact on the profitability and liquidity of the business,' the company noted.
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