Crew Clothing sales, profits fell in pandemic year
Crew clothing has filed its results for 2020 at Companies House and the figures show that it didn't do too badly last year, despite the impact of the pandemic that devastated many fashion businesses and hit its store sales hard.
The company's latest financial year ran to December 27 2020 and compared to the year ending December 29 2019, its turnover fell to £59.2 million from £67.8 million. Adjusted EBITDA fell to £8.87 million from £9.75 million and net profit dropped to £5.4 million from £8.8 million.
The 13% turnover decline was directly due to the pandemic with its stores being closed for a number of months. The lockdown significantly impacted both the company's stores and its wholesale business model, and although its e-commerce business performed strongly, it wasn't enough to make up for the loss of sales through physical locations.
But the fact that adjusted EBITDA declined only 9% is encouraging, with the loss of turnover that sent it downwards being partly offset by government finance initiatives to help businesses through the pandemic.
The company said it’s remaining cautious for the future with a disciplined approach to promotions and a focus on driving its e-commerce business with continued investment in digital marketing.
It’s also recognising that the recovery in physical stores will be gradual and that's what it's planning for. But it continues to believe there's a place in fashion retail for physical stores and is still growing its estate.
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