Loungers reports slight slowdown in LFL sales growth

8th Oct 2024 09:53

(Sharecast News) - Cosy Club owner Loungers reported a slight slowdown in like-for-like sales growth on Tuesday and a jump in revenue.

In an update for the 24 weeks to 6 October, the company highlighted LFL sales growth of 4.7% over the previous year. This compares to 5% LFL sales growth reported for the 11 weeks to 7 July 2024.

The group, which also operates all-day café/bar/restaurants across the UK under the Lounge and Brightside brands, said this was "another clear demonstration of Loungers' ability to consistently outperform the broader UK hospitality market".

Total group revenue rose 19.2% on the previous year to £178.3m and Loungers said it continues to make good progress towards its target of returning to a pre-Covid EBITDA margin level of 13.5%.

Loungers opened 17 new sites during the period, versus 16 in the same period a year earlier, taking the total portfolio to 273 sites as at 6 October 2024. This included the Ritorno Lounge on Bristol's harbourside, which opened in July and has had the strongest start for a new site in the group's 22- year history.

A further 18 sites are set to open in the second half.

Chief executive Nick Collins said: "I am delighted with our performance and the consistency of our sales growth, both in terms of like for like growth in the mature estate as well as the strength of our new openings. During the period we have opened in 17 towns and high streets across the UK, which adds up to 37 in the last 12 months, and enormous credit is due to the hard work and professionalism of our amazing teams.

"From what we are seeing across our sites, UK consumers are feeling increasingly confident and want to go out and enjoy themselves across all parts of the day. That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success."