Monsoon Accessorize has said trading conditions remain “difficult” despite pressures easing as it posted a drop in profits.
The fashion retailer reported an EBITDA of £20m in the year to 26 August 2023, down £4.4m or 18% from the previous year.
Group sales at Monsoon, Accessorize and East owner Adena Brands dipped by 4% to £248m as the retailer transitioned to a new franchise partner in Saudi Arabia and kidswear sales fell.
Retail like-for-likes rose 4% in the period, led by an 11% jump in sales at Accessorize UK and 6% in Monsoon’s digital womenswear sales.
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The retailer said the National Living Wage increase, rates and energy cost increases contributed an additional £5m of costs
Monsoon noted its was impacted by lower demand and weaker online sales caused by the cost-of-living crisis, unseasonable weather in summer 2023 and continued cost inflation.
Chief executive Nick Stowe told Drapers that the current trading environment remains challenging into first quarter of 2024.
“It is easing a little bit with a similar pattern to what we have seen before – of our core offer doing well and international improving but still [being] difficult,” he said.
He added that the business’ airport locations have performed well, alongside beach and occasionwear, as shoppers continue to travel.
Monsoon will open 20 more stores in the UK and is continuing to add to owned stores in Europe with a renewed focus on Italy, its largest EU market.
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