Bravissimo MD becomes CEO, profits fall on markdowns due to overbuying
Omnichannel lingerie retailer Bravissimo has named a new CEO with Leanne Cahill moving into the role after being the company's managing director for the past two years.
Having originally joined as finance director in 2017, finance had been her key area of expertise with the executive having been head of finance, Europe, and executive director at Travelex before her time at Bravissimo.
Her CV also includes a wide variety of companies well known in the UK, such as Career Break, Boots UK and its Walgreens Boots Alliance parent, Legal & General and Marks & Spencer.
The appointment comes shortly after the company announced its results for the year to October 31 2019, with it saying revenue grew 5% to £60.2 million in the period. But this growth was largely due to markdowns that dented the brand’s gross margin. It fell to 53.5% from 55%. The firm admitted that it “overbought the winter and spring collections and increased markdown to clear the stock”. It added that stock levels were “back to normal” by the end of the year.
Markdowns dented operating profits too, of course, which fell to just £139,859 from £1.4 million a year earlier. Profit after tax dropped to £38,113 from £1.16 million.
Bravissimo didm’t give any update as to how it's been affected by the pandemic, but believes it has the strategy and resources to continue.
The company doesn’t seem to be worried by the UK’s looming exit from the EU either, as it said sales to customers living in EU countries make up only “a small proportion” of its total. However, it said it remains subject to the same macro conditions as its peers as well as to issues within the supply chain, although it added that its risk is no greater here than at any of its rivals.
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