Longchamp UK posts sales growth, warns of rental prices risk

The UK arm of handbag brand Longchamp has reported an 18% increase in sales to £8.7 million in 2015, from £7.3 million a year earlier. The company trades from three boutiques in London, one outlet and two concessions.

Profit for the year to 31 December 2015 was up to £392,988, from £223,832, according to documents filed with British business registry Companies House.

The British division said rising property rental prices are a potential risk for the business and could lead to stores becoming loss making. Two of its stores are located on Regents Street and New Bond Street, which are some of the most expensive shopping locations in the world.

According to a 2015 reports by property agent Cushman & Wakefield, rents on New Bond Street can reach up to £868 a year per square foot.

Longchamp UK said it conducts performance reviews of each shop on a regular basis.

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