Bensons for Beds 'returns to profitability' after sales rise despite 'unfavourable weather'

Bensons for Beds has said it returned to the black after a rise in its sales during its latest financial year.

The Accrington-headquartered retailer said its like-for-like sales increased by 7% in the 12 months to September 30, 2023. It added that its sales increased by 7% in the first quarter, 9% in the second, 8% in the third and 7% in the fourth.

In a statement, the business said it has returned to profitability "despite unfavourable weather and reduced consumer spending affecting footfall". However, Bensons for Beds has not revealed any further sales or profits figures. More details are not expected to be released until its full accounts are filed with Companies House which is not due to happen until June 2024.

The statement from Bensons for Beds comes after BusinessLive reported in July this year that the brand had posted pre-tax losses of £30.2m for the 12 months to September 24, 2022, and a revenue of £239.4m. At the time the business, which is backed by Alteri Investors branded the results as below expectations.

During that financial year the company's stores reduced from 177 to 165 while the average number of employees also fell from 1,913 to 1,851. However, the company said its results included "several one-off costs and operational disruptions which have now been rectified and normalised".

In October last year, Bensons for Beds acquired Eve Sleep's brand and intellectual property after the company entered administration. Eve Sleep was founded in 2015 and listed on AIM in May 2017.

A month later, BusinessLive reported that the joint administrators of Eve Sleep were braced for "significant claims" against the brand after it collapsed. According to a document filed by Kroll with Companies House, Eve Sleep owed more than £2.8m when it entered administration.

The document showed that unsecured creditors were owed over £2.4m while preferential claims totalled £432,600. However, the joint administrators said at the time that more claims were expected to be made against Eve Sleep.

In June 2022, Bensons for Beds named Nick Collard, a former boss at DFS, Morrisons and Holland & Barrett, as its new chief executive. He succeeded Mark Jackson who stepped down after leading the company for three years.

Mr Collard said: "The last 12 months has been tough for the retail sector as the cost of living continues to hit consumer spending hard. We planned for this, and alongside last year’s acquisition of Eve Sleep, this has put us in a strong position to offer a breadth of quality sleep solutions at affordable prices - delivering an even more profitable business through consistent and steady growth.

"Going into next year we are conscious that the market will remain challenging, particularly for big ticket items, but as a business we have confidence that what we are doing is delivering positive results. Bensons is a great brand and we have a massive opportunity to transform it into the ultimate sleep solution specialist that caters to today's and tomorrow's consumer.

"In 2024, we will continue to focus on the areas that are in our control; building our reputation for delivering great value through excellent customer experience and stylish, quality products at affordable prices, matched to all types of sleepers."