// Clarks posts recovery in profits after period of recovery and repositioning
// The company said it plans to return turnover to pre-Covid levels over the next three years
Clarks has recorded a rise in profits after the footwear retailer went through “a period of recovery and repositioning”.
The company reported operating profit of £61.7 million for the year to 29 January 2022, up from a loss of £162.2 million in 2020/21.
Clarks’ turnover grew 18.7% year on year to £920.3 million from £775 million, while profit before tax was £59.6 million, compared with a loss of £162.6 million in 2020/21.
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The retailer reported increased turnover and margin improvements through reduced discounting and a beneficial change in product and channel mix during the period.
It also witnessed a reduction in overhead costs resulting from the five-year transformation programme, as well as a reduction in reorganisation and refinancing costs.
Inventory holding reduced to £268.4 million at 29 January 2022 compared with £316.9 million in the previous year as excess spring/summer 20 stock was sold in the SS21 season.
The company said it plans to return turnover to pre-Covid levels over the next three years.
“The results for the year to 26 January 2022 reflect a period of recovery and repositioning for Clarks, while still being impeded by the continued impacts of the Covid-19 pandemic,” Clarks said.
“Although the global economic climate remains uncertain, we’re pleased to report a steady recovery and increase in consumer demand across all our markets, with profit after tax of £55.4 million.
“In the current financial year, we’ve appointed a new CEO, Jon Ram, and we are focused on a business strategy designed to grow our business in current and new markets, and to build a foundation for sustainable growth in the years ahead.”
