Lulu Guinness cuts losses but sales decline

The British accessories label Lulu Guinness managed to shrink losses for the year ending March 2016, said a Telegraph report. The brand popularly known for its lip-shaped handbags reported a pre-tax loss of 89,678 pounds (1,099,09 dollars) against losses of 253,181 pounds (310,298 dollars) a year earlier, the report added.

The company’s sales during the period were down to 9.1 million pounds (11.1 million dollars) from 9.5 million pounds (11.6 million dollars), however the company said, year to date sales have witnessed a 10 percent rise in sales, driven by online orders and tourist demand. The company added that it saw 9percent increase in sales during Black Friday in November 2016 against the prior year.

Lulu Guinness to diversify into shoes and clothing

The company closed its stores in the UK while expanding its overseas presence. Lulu Guinness blamed the challenging market conditions and heavy discounting strategies of its rival companies as well as rising rents in the capital for continued losses in the UK, Telegraph report added.

The company now plans to introduce a line of shoes, clothes and accessories like scarves to beat the trading woes faced by the company in the handbags segment.

The company shut one store in New York and replaced two stores in London with a pop-up shop in Covent Garden during the period under review. As a part of its international expansion plans, Lulu Guinness opened doors to stores in Taiwan and China and refurbished its stores in the Middle East.

The company founded by Lulu Guinness in 1989 with launch of a briefcase for women went on to introduce a handbag looking like a basket of roses, is on display as a part of the permanent fashion collection at the Victoria and Albert Museum.

Picture:Facebook/Lulu Guinness