Weak sterling dents Aquascutum’s profit

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Aquascutum

The depreciation of the sterling since last year Brexit vote had an adverse impact on Aquascutum’s profit, according to its latest Companies House files.

Gross profit at the upmarket menswear retailer plunged 9.2 per cent to £3.7 million in the fiscal year ending March 31, while gross profit margin fell 1.2 per cent.

The British brand said it has since “taken action on both pricing and purchase costs to ensure we manage the situation properly”.

Turnover also dropped five per cent to £12.5 million as a result of a store closure scheme and the closure of all concessions with House of Fraser.

Aquascutum’s retail arm comprised 60 per cent of the business, raking in £7.4 million worth of sales, while wholesales comprised 40 per cent with £5 million of sales.

A silver lining in Aquascutum’s accounts was the improved operating losses, which narrowed down to £4.8 million, compared to the £6.7 million recorded the same time the year prior.

In March this year, Aquascutum was acquired by Jining Ruyi Investment Co for $117 million (£95 million).

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