Lacoste UK Boosts Revenue Nearly 40% With New Footwear Distribution Deal

Lacoste UK has reported a significant surge in its 2024 financial performance, primarily driven by a strategic shift in its branded footwear distribution agreement. The company's accounts reveal a substantial increase in revenue, accompanied by a rise in gross profit, although the gross profit margin experienced a slight decline. This margin shift is attributed to a greater proportion of sales being sourced through the wholesale channel during the period.

Delving into the headline figures, the French brand's turnover for the 52 weeks ended in 2024 climbed to £98.141 million. This marks a notable increase from the £70.192 million reported in the previous year, which had the benefit of an extra week, totaling 53. Gross profit also saw a healthy rise, reaching £37.677 million from £31 million. Furthermore, the company successfully swung from a £651,000 operating loss in the prior year to an operating profit of £2.369 million. While still reporting a pre-tax loss, it significantly narrowed to £1.393 million from £3.269 million. The net loss for the financial period similarly shrank to £1.55 million, a substantial improvement from the £3.223 million loss recorded in 2023.

The company confirmed that revenues from its wholesale channel experienced a substantial uplift of 65.8%. This growth was primarily fueled by the introduction of the brand's footwear through a new sub-distribution agreement. This pivotal agreement, signed in December 2023, established Lacoste UK Limited (LUK) as the new distributor for Lacoste footwear across both the UK and international markets, effective from the Spring/Summer 2024 season. Under this arrangement, Pentland Brands UK Distribution Limited (PBUKD) earns a royalty from LUK, while LUK recharges PBUKD for the costs of services associated with operating the footwear business.

This strategic deal proved to be a major catalyst for the wholesale segment, aligning with Lacoste UK's ongoing wholesale strategy to target mid-tier and top-tier customers, which the company also states helped to "premiumise the brand." However, not all channels saw growth. Retail revenue from its boutique and outlet stores experienced a 6.5% year-on-year decrease. This decline was attributed to several factors, including the exit of unprofitable stores and a general reduction in footfall, largely associated with the prevailing economic environment.

While the company did not provide specific details regarding its 2025 performance, Lacoste has demonstrated considerable activity in both the UK market and globally so far this year. Recently, the brand launched a Selfridges accessories pop-up. Earlier in the summer, it announced a new global chief executive and also appointed Adèle Exarchopoulos as its new brand ambassador. Further underscoring its commitment to key markets, Lacoste invested in upgrading its sole store in Scotland during the spring.