The Cotswold Company
(the “Company”), the digitally-led premium handcrafted furniture and homeware brand, is pleased to announce a trading update for the six months ending 25th August 2024 (“H1” or the “Period”), being the first half of the Company’s FY25 financial year.
Key highlights:
- Further strong sales1 growth of 15% to £40.1m (H1 FY24: £35m), significantly ahead of the home and furniture market2, with sales up 80% on a five-year basis and when compared to pre-Covid levels
- 21% year-on-year increase in active customers reflecting the strength of the Cotswold Company brand, highly effective digital marketing activities, and the benefits of the Company’s multi-channel model
- Gross margin increased significantly over the Period, reflecting the positive impacts of long-term investments in brand and supply chain optimisation as well as growing consumer demand for high-quality homewares and furniture that are made to last
- ‘Excellent’ rating on Trustpilot maintained with new Swindon depot and Lichfield training centre opened to expand and further enhance The Cotswold Home Delivery service
- 10th retail showroom opening in Stamford in early September with several further openings in the pipeline
The Cotswold Company continued its strong growth trajectory in the Period, delivering sales growth of 15% to £40.1m (H1 FY24: £35m), significantly ahead of the broader home and furniture market. This strong performance was supported by a 21% year-on-year increase in active customers, reflecting the strength of the Cotswold Company brand, effective digital marketing, and the positive impact of the Company’s model, which delivered an increase of 49% in multichannel customers.
E-commerce accounted for 80% of total sales, with growth driven by both customer and conversion rates. Sales via The Cotswold Company’s nine retail showrooms increased significantly driven by new categories and footfall growth as a result of geo-targeted digital marketing. The Company will open its 10th retail store in Stamford in early September after the successful opening in Bath and with several more in the pipeline. The company also has stores in Godalming, Tunbridge, Leamington, Harrogate, Chelmsford, Norwich, Canterbury and a flagship in Stow-on-the-Wold.
Gross order margins increased substantially year-on-year, reflecting the strength of The Cotswold Company brand, the positive impact of supply chain optimisation initiatives, and strong consumer demand for its timeless, high-quality homewares, which are made to last and come with a 15-year furniture guarantee.
In the period, best-selling products were from the Camille Oak range – sales up 90% year-on-year – driven by strong demand for the Camille Oak Rattan Back Chair (sales up 137% year-on-year) and Camille Oak 6 Drawer Chest (sales up 74% year-on-year). Strong growth was also seen across other ranges, including Inglesham Whitewash Oak upholstery – the Group’s standout category – grew 92% year-on-year.
To support its focus on exceptional customer service, the Group recently opened its new depot in Swindon as well as Cotswold Home Delivery Training Academy to expand the availability of its high-quality, white-glove delivery service.
Ralph Tucker, chief executive officer of The Cotswold Company, said: “The Cotswold Company continues to go from strength to strength, with sales growth significantly outperforming broader market data over the past six months. We believe this is once again a great endorsement of our strong brand, which is synonymous with great quality and timeless aesthetics, as well as increasing consumer demand for high-quality but affordable products built to last.
“We have a clear strategy to become one of the UK’s leading premium homeware brands. Our investments in our multi-channel proposition, geo-targeted digital marketing, and product and brand to ensure we have a best-in-class customer proposition have all delivered meaningful results. This gives us fantastic momentum as we head into the busy Christmas period, which will be enhanced by several exciting new product launches, the opening of new showrooms, and a brand refresh supported by a nationwide TV advertising campaign launching in the Autumn to introduce even more customers to the joys of our timeless and high-quality, made-to-last furniture and homeware.”
