Lovers facing 'challenging environment' as 'sexual wellness' retailer The Lovehoney Group sees profits tumble
Couples could be the latest casualty in the ongoing cost of living crisis as online ‘sexual wellness’ retailer, The Lovehoney Group, posts huge fall in profits.
Lovers are facing a “very challenging environment” it appears, after an online sex shop posted a fall in profits and turnover. The Lovehoney Group - an ecommerce retailer of "sex toys, lingerie and erotic gifts" - sells adult lifestyle products.
Founded in 2002 by friends Richard Longhurst and Neal Slateford, the firm said it was responding to a gap in the sex toy market for a couple-friendly online shopping experience.
It joined forces with WOW Tech in 2021 to become the "world’s leading sexual wellness brand", with Johannes Plettenberg as chief executive and a combined team of more than 650 employees.
The group's motto states it is "leading the world’s pursuit of sexual happiness", with brands including Lovehoney, Womanizer and Fifty Shades of Grey. However, last year, turnover fell from £121.8m to £101.2m, the latest company statement showed. Pre-tax profits for the period went from £29.6m to £12.8m.
Releasing the results, the company said: "The 2023 year continued to see a very challenging environment and consumer climate with increasing interest rates and high energy costs really impacting the consumer and thus reducing demand for our products. Within this environment the company focused on efficiency and profitability rather than trying to maintain the turnover.
"The directors have concluded that forecast trading, cashflow and profitability measures will be at least maintained for the foreseeable future."