// Hobbs turnover halves as Covid-19 takes its toll on business
// Turnover dropped 51% to £65.1m in the 12 months to 27 March
// Hobbs said it lost 47% of its store trading hours during the year
Hobbs has swung to a full-year loss as its turnover halved thanks to the effects of Covid-19 on trading.
Turnover dropped 51% to £65.1 million in the 12 months to 27 March, with the company citing store closures and a drop in demand for its core product categories.
Hobbs said it lost 47% of its store trading hours during the year and was “performing well” prior to the pandemic.
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The London-based retailer made a loss after tax of £15.2 million compared to a profit of £4.3 million a year earlier.
The company said its gross margin also dropped to 46% from 60% a year earlier, driven by increased promotional activity and higher Covid-19-related stock provisioning at the end of the year.
Looking ahead, Hobbs said its principal risk is “the pace at which customer shopping habits return as the world recovers from the pandemic”.
But it added that its “attractive and affordable” offering combined with its “strong online presence”, both directly and through third parties, make it “well placed to thrive”.
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