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Parent company of Clarks posts full year net loss

Jun 14, 2024 United Kingdom
Parent company of Clarks posts full year net loss
The parent company of the British footwear retailer Clarks suffered a net loss in 2023, despite overall revenue growth. The results reflect a weak demand, with cautious consumers facing high inflation and rising interest rates
In the twelve months to the end of December 2023, C&J Clark (No1) Limited saw its revenue increase to 994.5 million (1.18 billion) from 980.3 million British pounds (1.16 billion euros) in the previous year. However, the company sold 30.7 million pairs of shoes, as compared to 32.3 million pairs of shoes in 2022, suggesting that the higher revenue was due to higher prices fuelled by inflation and more premium products.

From a channel perspective, C&J Clark recorded a full year retail revenue of 238.9 million British pounds (283.6 million euros), on a comparable basis to 241.2 million British pounds (286.3 million euros) in the prior year. On the other hand, e-commerce was up marginally at 134.9 million British pounds (160.1 million euros), the wholesale revenue rose to 415.2 million (492.9 million) from 404.8 million British pounds (480.5 million euros), and outlet revenue rose to 203 million (241.0 million) from 199.3 million British pounds (237.0 million euros).

As a result of the focus on strengthening its position in the UK and US markets, the company’s 2023 revenue increased from 387.4 million (460.0 million) to 398.3 million British pounds (472.8 million euros) in the UK/Republic of Ireland region and from 457.9 million (543.6 million) to 466.3 million British pounds (553.5 million euros) in the Americas region.

In the APAC region, due to more robust demand with outlet stores trading well across markets, revenue rose from 90.5 million (107.4 million) to 91.8 million British pounds (190.0 million euros). The exception was the EMEA region, where revenue fell from 43.7 million (51.9 million) to 38.1 million British pounds (45.2 million euros) last year.

Despite the full year net revenue growth, Clarks’ parent company saw its gross profit decline to 481.1 million (570.0 million euros) from 485.9 million British pounds (576.8 million euros) in the previous year. Losses have also widened significantly. The operating loss was 20.3 million (24.1 million), as compared to a 54.5 million British pounds (65.0 million euros) profit a year earlier. The loss before tax was 39.8 million British pounds (47.2 million euros), 75.7 million (89.9 million) lower than the prior year and the net loss was 32.1 million British pounds (38.1 million euros), a sharp fall from the 22.4 million British pounds (26.6 million euros) profit recorded in 2022.

Overall, weak demand and a cautious consumer due to high inflation and interest rates led to sluggish sales in 2023, following a period of global oversupply during the post-pandemic recovery. According to the accounts it filled, last year’s trading environment was characterised by “ongoing uncertainty and relative pessimism, especially in the western hemisphere”.


1 GBP = 1.19 EUR


Image Credits: whiteleyshopping.co.uk


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