The company behind the flagship Victoria's Secret store on Dublin's Grafton Street last year recorded average pre-Covid weekly revenues of just over €200,000.
According to new accounts for the high end lingerie brand firm behind the Grafton Street store, L Brands Fashion Retail Ireland Ltd recorded pre-tax profits of €2.55m in the 12 months to the end of February 1st 2020.
The business recorded the pre-tax profits as revenues dipped by 8% from €11.35m to €10.4 million for the 12 months to the end of February 1st 2020 - or average weekly revenues of €200,269.
The pre-tax profit of €2.55m followed a pre-tax loss of €31.6m for the prior year and that loss arose from non-cash charges incurred by the company as a result of the below expectation performance of the store.
The outlet was opened to much fanfare with a queue of over 500 shoppers waiting outside the 2,700 sq metre store on December 5th 2017.
For many years, Victoria's Secret used its televised annual fashion show featuring the likes of Kendall Jenner and Gigi and Bella Hadid as a global marketing tool but axed the show in 2019 due to falling ratings.
On the impact of Covid-19, the directors for the Grafton Street store company stated that the pandemic has resulted in the temporary closure of the company’s store, limited store operating hours, reduced customer traffic and spending and delays in manufacturing and shipping product.
The directors state that the company is also working with its suppliers to minimise potential disruptions, while managing the company’s business in response to a changing dynamic.
Last October, a new joint venture commenced operating the Grafton Street store after British retailer, Next acquired a majority 51 per cent stake in the business as part of a wider deal for Victoria Secret’s business across Ireland and the UK.
A note attached to the accounts states that prior to the joint venture deal, L Brands Fashion Retail Ireland Ltd was transferred to a connected entity for $1m as part of a group re-organisation in April 2020.
The company behind the Grafton Street store recorded operating profits of €4.17m last year and interest payments of €1.62m reduced profits to €2.5m. A corporate tax charge of €2.4m reduced profits to €110,000.
Numbers employed by Victoria Secrets here reduced from 106 to 84 in the 12 months to the end of February 1st last with staff costs reducing from €2.38m to €1.77m.
