Danish fashion retail giant Bestseller has published its latest annual results and said it “managed to increase its top line in a changed and challenging market”, although profits fell, “as expected”.

However, its top-line growth “instilled optimism and motivation, which will be turned into – and invested in – business development, technology, and the circular transformation of the fashion industry”

The company that owns Jack & Jones, Vero Moda, Only, and Selected, among other brands, reported its best results ever in the previous fiscal year, but stated that it was “bracing for more challenging conditions and challenges in the upcoming financial year.” The phrase “that prediction has proven to be accurate” was used this time.

The total turnover for the fiscal year 2022–23 (which ended in July) increased by 5 per cent to DKK37 billion, while retail revenue increased by 11 per cent. However, profit before taxes decreased from DKK6.085 billion to DKK4.944 billion in just one year. From DKK5.143 billion to DKK3.913 billion, net profit decreased.

While physical shop performance, including those of its own locations (which total almost 2,100), as well as the numerous partner-owned locations, “contributed positively to the result and showed promising signs, overall online sales saw a decline for the first time.”

Anders Holch Povlsen, the firm’s CEO and owner, said of this, “As expected, it became a year that demanded a lot from all colleagues, and everyone deserves praise for the effort.”

The company has been continuing to invest in its operations, including “digitalisation and new facilities, but also – to a large extent – in business models, materials and technologies aimed at contributing to the necessary transformation of the fashion industry”.