Lakeland still positive despite dip in profits
RETAILER Lakeland, which is investing £10m in expanding its distribution base in Cumbria, has reported a fall in profits despite a 4% rise in sales to £157.5m.
The family-owned Lake District-based company, which sells kitchen accessories and homeware online, through catalogues and in 60 UK stores said that while “uncertainties” remain regarding the domestic economy and the retail sector, it is well positioned to grow.
Profits in 2012 fell 14% from £7.2m to £6.2m as gross margins fell from 53% to 52.1%. During the year the company invested £5m in openingh shops in Brighton, Enniskillen and the Metro Centre, Gateshead, and refurbishing other outlets.
Owned and managed by three brothers from the Rayner family, Windermere-based Lakeland said it was continuing to see home shoppers migrating online. During 2012 there was an 11% fall in call centre volumes.
Looking ahead, the company said: “The directors believe that growth opportunities exist and the business is well-placed with a strong balance sheet to capitalise on these opportunities.”
In January the company said it was looking to grow overseas too, with launches planned for the Middle East and Germany this year. The 60,000 sq ft expansion to its distribution centre in Kendal is expected to be completed early in the new year.
