Monsoon reduces losses but fails to return to profit

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Monsoon

Monsoon has seen its losses dramatically ease following dismal results last year but has failed to return to growth.

For the year to August 27 the womenswear retailer saw losses drop 32 per cent to £12.6 million, while operating losses dropped 41.5 per cent to £10.4 million.

EBITDA jumped 18 per cent to £23.9 million, considerably better than the 16.9 per cent drop it posted last year.

Elsewhere turnover rose very slightly from £422.1 million to £423.7 million, in what chief executive Paul Allen said was “probably the most difficult” trading environment in Monsoon’s history.

“During the financial year, we focused on the continued turnaround of the business, in particular the performance of the Monsoon brand,” he added.

“Against a demanding retail environment, we made progress in implementing our plans and the results reflect this.

“In common with all of our high street competitors, we are witnessing a steady decline in footfall and like-for-likes in our UK store-based business.

“While we are enjoying strong growth in online sales, both direct and through third parties, these are not, as yet, offsetting the decline in store sales. As a result we continue to look at ways of mitigating the impact of our poor store performance.”

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