The Perfume Shop has filed its accounts for 2023 and reported revenue rising from £289 million in 2022 to £302 million last year. Comparable sales rose by 3.3% with the company saying it saw strong growth both in its stores and online.

The company, which is owned by the same Hong Kong-based group as Superdrug, said it faced a strongly competitive market in which its customers’ incomes suffered as inflation soared.

And it has also been seeing significant increases in its cost base with wages rising and business rates taking their toll. 

And it invested heavily in its physical stores, refurbishing 27 of them in 2023 while closing two locations at the end of their leases. That meant it store count was 215 at year end.

The end result was that pre-tax profit fell to £18.6 million from £21 million a year earlier. Net profit dropped to £15.2 million from £19.1 million.

During the year £37.5 million in dividends were also paid to owner CK Hutchison Holdings, compared to no dividends the year before.

The directors said they expect the UK retail environment to “remain challenging and strongly competitive in 2024, with a heavy focus on price” this year. And it cited both the subdued consumer sentiment and ongoing high costs.

But it believes that with “the right retail proposition and customer service there is potential for solid growth and returns to be achieved. The company’s strategies are designed to ensure its success in the UK market, maintaining its strong position and attracting footfall with its fragrances, services and focus on customer experience, both in-store and online.

“The robust trading performance in 2023, coupled with a clear future strategy and cash flows that can support investment, leaves the company well positioned to grow successfully in 2024 and beyond.”