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Published
Jun 13, 2016
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Clarks annual profits worse than expected, drop by 65%

Published
Jun 13, 2016

Difficult trading environments in the UK, Europe and the Americas as well as a lengthy stabilisation period at Clarks’ distribution centre in Hanover in the US led the company to suffer a significant drop in operating profit in the year to January 31, 2016.


Clarks


Group operating profit fell from £112.7m to £45.8m despite a 2.6% rise in turnover in the period from £1,494.4m to £1,533.6m.

Pre-tax profits fell to £35.0m from £98.8m in the previous year.

The results were below the company’s expectations. In September, the British footwear retailer said it looked likely that the group would deliver a result for the second half-year less than was planned and more in line with last year.

The company is currently being led by Thomas J.O’Neil, who is acting as Executive Chairman until a new CEO is appointed. Melissa Potter, former CEO and Robin Beacham, former CFO, hit headlines last September when they abruptly announced their resignation from the company.

Clarks is mid-way through a business restructuring programme, which saw 170 people being made redundant across its global operations in February.

Underlying issues with inventory management and rising costs have already begun to be addressed, said the company.

The retailer merged the UK and Europe regions into one single consolidated European region trading alongside the Americas and Asia Pacific.

Clarks is a British footwear retailer and manufacturer, and has more than a thousand stores worldwide.

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