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Clothing & ShoesHigh Street

Footasylum slips to half-year loss

Footwear retailer Footasylum has reported a £4m loss in its half-year financial results for the 26 weeks year ending 25 August 2018.

Despite the loss, the company’s revenue was up 19% to £98.6m from £83.2m in the previous year. It saw growth in sales all across the board; store revenue was up 12% to £66.3m, wholesale was up 200% to £2.1m. Its online sales – which accounts for 31% of its overall revenue – grew by 29% to £30.2m.

The company reported an adjusted EBITDA of £1.5m, an adjusted loss before tax of £4m and had net cash balances of £4.5m.

Footasylum opened one store during the period, bringing its portfolio up to 66 stores and invested into its online offerings.

Barry Bown, executive chairman of Footasylum, said it had been a “difficult trading period” as the chain “contended with tough conditions” on the high street and and delays in new store openings and upsizes.

He said: “While we are pleased to be reporting good top line growth, and a particularly strong year-on-year revenue performance in both online and wholesale, our profitability has been impacted both by a lower overall gross margin from higher clearance activity in stores, as well as the extensive investments that are being made to position the company for future growth.

“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, multi-channel proposition, combined with strong partnerships with core suppliers, will underpin our future progress.”

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