Lovehoney, the Bath-based adult toy retailer, has experienced a significant decrease in profits due to a decline in demand for its sex products. The company reported a substantial drop in revenues to £101.2m from £121.8m the previous year, with profit before tax decreasing to £12.8m from £29.6m.
According to a statement on Companies House, the challenging consumer climate, driven by increased interest rates and high energy costs, has noticeably impacted the demand for Lovehoney’s products. As a result, the company has shifted its focus towards efficiency and profitability rather than sheer turnover. It has also reduced its workforce by 60 individuals, bringing the total to 328 employees.
Lovehoney has identified the variability of consumer demand as a significant risk and aims to address this by analyzing customer buying patterns. The company has emphasized the need to maintain forecast trading, cash flow, and profitability measures in the foreseeable future.
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Some of Lovehoney’s top-selling products include the Classic Wand 2.0 Extra Powerful Multispeed Massage Vibrator, priced at £54.99, and the Womanizer Blend Rechargeable G-Spot and Clitoral Stimulator, available for £99.99. These products have gained popularity for their quality and features designed to enhance pleasure.
Established in 2002 by Richard Longhurst and Neal Slateford, Lovehoney merged with the German competitor WOW Tech Group in 2021 to form the Lovehoney Group. This merger included the integration of Amorana, a Swiss sexual wellbeing retailer acquired by Lovehoney in September 2020.
Discover more Love Honey adult toys for men and women.