Companies

Clarks returns to profit after a two-year downturn

Apr 24, 2026 United Kingdom

The UK-based footwear company has bounced back to profitability in 2025 through strategic cost reductions, offsetting weaker consumer demand amid a more volatile retail backdrop

Clarks reported an after-tax profit of 31.1 million pounds (35.9 million euros) in the twelve months to the 31^st of December, compared to an after-tax loss of 39.3 million pounds (45.4 million euros) in the full year 2024.

The group’s revenue fell by 3.3% to 871.5 million pounds (1.0 billion euros), as consumers became “increasingly cautious, selective, and value driven”, the company said.

Despite the decline in revenue, operating profit rose to 66.3 million pounds (76.5 million euros) from a loss of 18.1 million pounds a year earlier (20.9 million euros), supported by an improvement in gross margin to 49.2% from 47.9%. Selling, distribution and administrative expenses decreased by 8.8% to 363.3 million pounds (419.5 million euros).

“FY2025 has marked a turning point in the company’s return to profitability; a major effort to optimize key processes and reduce structural overhead costs has driven the return to profitability for the first time in two years”, said the company in a statement.

Wholesale remained Clarks’ largest revenue channel, with the Americas being its biggest wholesale market. The company said that margins in the region were impacted by “unfavourable tariff policy and off-price deals”.

In the UK and EMEA, wholesale trading remained challenging as retail partners managed inventory and cash cautiously amid a weak retail backdrop.

In contrast, the APAC business delivered strong organic growth, supported by an increase in distribution outlets, with all regional markets posting double-digit sales increases in 2025.

Clarks has warned that global market conditions remain uncertain, with heightened volatility driven by shifts in US trade policy.

Nevertheless, for the 2026 financial year, Clarks’ focus is on “increasing market share” and driving growth “through targeted business development and expansion into new markets”. This includes opening new stores and outlets for its brands, Clarks Originals and Cloudsteppers.

In addition, it has announced plans to sell third-party brands for the first time in its almost 200-year history, via a newly launched digital marketplace. As part of a shift towards a wider offering, more than 100 labels will be added to its website.

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Image Credits: drapersonline.com

United Kingdom Clarks Companies Footwear Results Year Results