// Schuh swings to £6.1m pre-tax loss, compared to previous year profit of £13.1m
// Full-year turnover also decreased by more than £20m to £288.4m
// It endured a second consecutive year of “extremely challenging” conditions
Schuh has attributed a second consecutive year of “extremely challenging” conditions for its swing to a loss, according to accounts filed at Companies House this week.
For the year ending January 2019, the footwear retailer went booked a pre-tax loss of £6.1 million, compared to the previous year’s profit of £13.1 million.
Turnover also decreased, declining by more than £20 million year-on-year to £288.4 million, with an uptick in online sales “masking a considerable drop in store sales”.
- Schuh appoints Nicola Monachello as buying director
- Schuh seeks property cost cuts
- Schuh calls in advisers amid tough trading
“We have been faced with an unprecedented number of trading headwinds, including: increasing occupancy (rent, rates and service charges) and staff costs (minimum/living wage, apprenticeship levy, pension autoenrolment costs etc),” Schuh finance director David Gillan-Reid said.
“Brexit uncertainty/political instability, and consumer spending being lower on footwear and apparel.
“We are navigating our way through these demanding times and remain optimistic of our future, but only with engagement from our landlords and the business.”
The trading update comes after Schuh close down all three of its German stores, and shortly after it drafted in retail property consultant CAPA with the aim of reducing occupancy costs across the store estate.
Genesco, Schuh’s US-listed parent company, has also engaged directly with landlords to seek their support in right-sizing rents.
Schuh also recently appointed former New Look executive Nicola Monachello as its new buying director who will work closely with key brand partners to redefine and reengineer the retailer’s buying strategy.