Footasylum swings to half year loss
Footasylum has said it experienced difficult trading in the six months to 25 August as it battled against tough conditions on the UK’s high streets.
During the period the company made an adjusted loss before tax of £4 million compared to a profit of £2.3 million in the same period in the previous year.
Footasylum said profitability had been affected by a lower overall gross margin from higher clearance activity in its stores, as well by the investments made to position the company for future growth.
Revenue was up 19% to £98.6 million in the period with store revenue rising by 12% and online sales increasing by 29%.
Barry Bown, executive chairman of Footasylum, said: "This has been a difficult trading period for Footasylum as we have contended with tough conditions on the high street and some delays in our programme of new store openings and upsizes ahead of the peak trading period.”
The company said it is confident that its new store openings and upsizing programme combined with investment in its online offering will materially improve Footasylum's existing brand relationships and enhance the consumer experience.
However, the company will scale back its store expansion programme in the 2020 financial year to two new stores and two upsizes per annum until the capacity for more investment returns.
Bown added: “We are encouraged by the early results and trends that we are seeing from our investments in key areas such as digital and marketing and see substantial opportunity for further progress across these and other parts of our operations.
“In the longer-term, we remain confident that the company's differentiated, product-led, multichannel proposition, combined with strong partnerships with core suppliers, will underpin our future progress."
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