Boux Avenue posts 16% sales growth but EBITDA falls to £5m in FY26

Boux Avenue grew sales 16% in the year ending March 2026, but EBITDA fell to £5 million from £6.4 million a year earlier. The lingerie, nightwear and swimwear brand, owned by Theo Paphitis Retail Group, disclosed the figures in a trading statement that confirmed growth across all three of its channels: stores, e-commerce and third-party retail partnerships.

Where the growth came from

Like-for-like sales rose 10.5% in stores and 14.9% online. Active customer numbers increased 6%. Student sales grew 13%, and sales to customers aged 35 and over rose 9%, which the brand credited to campaigns including its Spring Icons Lingerie and Summer Swimwear collections.

Online and third-party channels recorded double-digit growth, with increased sales through NEXT, M&S, Very and ASOS. John Lewis and TikTok Shop also sit within the partnership roster. That wholesale spread gives Boux distribution beyond its 27 UK stores and its own website — a hedge against single-channel softness, though the statement does not break out revenue or margin by channel, so the profitability of each route remains unverifiable.

What the EBITDA decline signals

The drop from £6.4 million to £5 million EBITDA alongside accelerating sales deserves scrutiny. The statement attributes margin pressure to nothing explicitly, but the year included heavy investment in product ranges, marketing and the store estate. Boux Avenue said its design and buying strategy had improved sell-through rates (the share of stock sold at full price before markdowns) and margins. That claim is plausible but unquantified — no margin percentage, no markdown figure, no marketing spend appears in the release.

In effect, the brand traded profit for footprint and customer acquisition. Whether that pays off depends on whether the new customers and refitted stores lift profitability in FY27, which the statement does not project.

Store estate moves

The retailer relocated its northern flagship to a larger store at Manchester's Trafford Centre and moved within Liverpool ONE to a new location. It also refurbished stores at Bluewater, Westfield White City, Guildford and Belfast.

It is now considering further locations in Edinburgh, Bristol, Nottingham and Leeds. Those are stated intentions, not signed leases; no timelines, store sizes or fit-out costs were disclosed.

What management said

"We are delighted with the progress that the Boux Avenue brand has made over recent years and the 2026 results reflect the excellent further progress made within the year," Paphitis said in the statement.

He added that the business would look to expand through its existing channels and partnerships, and would pursue further international collaborations. No named markets, partners or dates accompanied that ambition.

The comparison that matters

FY26's 16% growth more than doubles the prior year's 6.9% sales increase for the year ending March 2025 — but that year produced higher EBITDA of £6.4 million, alongside a 30% jump in Valentine's sales and double-digit growth in February 2025. Founded in 2011, Boux Avenue now faces the test of converting its fastest revenue growth in two years back into profit, with the Edinburgh, Bristol, Nottingham and Leeds decisions and any international partnership the signals to watch in the coming year.