Hackett sales drop, e-tail focus boosts conversion
Hackett was hurt by the pandemic at the tail end of its financial year to the end of March 2020. It saw its UK turnover falling almost 8% to £97.9 million and it swung to an EBITDA loss of £3.9 million from a £4.9 million profit in the 2019 financial year.
Its operating loss was £21.5 million, many times the £6.7 million of the prior year, and the net loss widened to £22.2 million from £7.7 million.
The turnover fall was mainly caused by the wholesale business that saw a reduction in sales.
There was some good news concerning the company’s directly operated retail business as it opened its new Savile Row luxury destination during the year and closed its unprofitable Spitalfields store.
That said, sales through its retail channel were adversely affected by the Covid-19 pandemic in the last two months of the financial year and full-price stores saw a sales fall of 9%, although this was partially offset by a 2% rise in outlet store sales.
All of its shops were closed by the end of March, which added up to 11 full-price locations in the UK, plus six outlet stores and one concession.
Surprisingly, Hackett also said its e-tail sales after returns actually fell by 6%. However, they’d risen a massive 67.5% in the previous year so were still clearly ahead compared to two years earlier.
The company said that e-sessions rose 5% and conversion improved by 8% due to website enhancements.
Hackett has been immersed in a transformation plan in recent periods with a focus on developing online sales further and improving/optimising the wholesale, franchise and retail channels.
However, it has had to adapt its plan for Covid-19 and is also heavily focused on controlling costs and keeping an eye on its credit situation for now. But it said that parent firm Pepe Jeans “is committed to support the company”.
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