Reiss posts full year loss but makes strong recovery in 2021
Fashion retailer Reiss swung to a loss in the year to 31 January 2021 after trading was impacted by the effects of the coronavirus pandemic.
The fashion retailer made a pre-tax loss before exceptional items of £3.8 million compared to a profit of £20.5 million in the previous year. In addition, sales fell to £170.7 million from £226.5 million in 2019.
Exceptional items totalling £9.8 million were mainly Covid-19 related and included store onerous lease and asset impairment provisions, stock and fabric provisions, as well as restructuring and Covid-response related costs.
However, the retailer said trading has improved since the start of the current financial year with a very strong recovery in sales. In the 30 weeks to 29 August 2021, total group sales came in at £124.2 million, which was 52% higher than the same period in 2020 and 8% higher than in the pre-pandemic year of 2019. As a result, Reiss expects to return to profit this year.
Reiss chief executive Christos Angelides said: “Reiss has recovered strongly from a challenging 2020, and the creation of our new casual collections has proved successful with our customers. As the impact of the pandemic recedes and the economy recovers, we are also seeing a strong return in sales of occasion and formal wear – our speciality since 1971.”
Following Next’s acquisition of a 25% stake in the business earlier this year, Reiss is currently working to transition its online platform, warehouse, distribution and logistics to Next’s platform to enable it to benefit from Next’s infrastructure capabilities and to accelerate its growth plans.
In addition, Reiss will be launching its first childrenswear collection next month and is also planning a collaboration with Castore Sportswear.
