Clarks sales drop in “extremely volatile” environment

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Clarks trading update Thomas O’Neill
Footwear retailer Clarks posts "poor" financial results
// Clarks posts a loss after tax of £82.9 million for the 52 weeks to February 2, 2019
// Underlying operating profit fell by 36%
// Group sales fell from £1.53 billion the previous year to £1.46 billion

Clarks has recorded “poor” full-year results amid an “extremely volatile” environment.

The footwear retailer reported a loss after tax of £82.9 million for the 52 weeks to February 2 this year, which is more than double the £31.3 million loss in 2017/18.

Underlying operating profit fell by 36 per cent during the period.


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Group sales fell from £1.53 billion the previous year to £1.46 billion, while group operating profits was at £75.7 million.

“The external environment in which the group operates continues to be extremely volatile,” Clarks chairman Thomas O’Neill said.

“The UK and EU are yet to agree upon the terms of the UK’s exit from the EU, while trade relations between the US and China remain volatile”.

He said the “extremely challenging” retail environments in two of Clarks’ key markets – the US and the UK were reasons for weak sales.

Since the end of 2018/19, Clarks has appointed Giorgio Presca as chief executive, and has closed its last manufacturing warehouse in Somerset, which saw 35 redundancies.

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