Ann Summers narrows losses significantly as strategic moves show promising signs of recovery.

Ann Summers has filed its accounts for the year ending June 2025, revealing encouraging signs that the lingerie specialist is heading toward recovery despite still posting losses. The company described its 2024/25 financial year as one of "resilience and strategic adaptation," navigating significant challenges in the retail sector.

While the business remained loss-making, the financial performance showed substantial improvement. The operating loss before tax and exceptional expenses narrowed significantly, decreasing from £9.8 million to £5 million compared to the previous year. Furthermore, the loss on ordinary activities before tax and the overall net loss showed an even greater decline, reducing from £13 million to £3 million over the 12-month period. Turnover also remained stable, experiencing a slight increase from £93 million to £93.4 million, though the impact of inflation meant the cost of sales also edged up slightly.

Ann Summers managed to overcome major retail headwinds during the year, which included persistent economic uncertainty, rising inflation, and the ongoing cost of living crisis that put pressure on discretionary spending. Despite these tough trading conditions, the company focused on strategic initiatives to optimize its operations and expand its market reach.

A key strategic move during the period was the enhancement of its digital presence. The launch of knickerbox.com in July 2024 marked a significant milestone, leveraging a well-known brand to drive future growth. Alongside this, the company introduced KBX, a new in-house brand offering "stylish, effortlessly sexy, everyday lingerie." This initiative aims to connect with a broader audience and strengthen Ann Summers' digital footprint as part of its omnichannel strategy for both domestic and international markets.

In terms of physical retail, Ann Summers optimized its store estate while maintaining a strong physical presence with 75 locations. The company also pursued international expansion through third-party partnerships, notably its collaboration with LIWA, which has created new opportunities in the Middle East.

To further streamline operations, Ann Summers made the strategic decision to close Connect, its direct selling channel. This channel ceased trading after the financial year ended in October 2025. Although the company has not posted a profit since June 2021, accumulating losses of £40 million since then, the latest financial results, combined with these strategic adjustments and new brand developments, suggest that the business picture could soon change for the better.