ADVERTISEMENT
Online & Digital

Missguided posts £46.7m loss

Online fashion retailer Missguided has posted a £46.7m loss in its financial results for the 53 weeks ending 1 April 2018 in what it described as an “extremely challenging” year.

This is compared with a loss of £1.6m in the 2017. The company said its profitability was “severely impacted” by a significant investment to exit poorly selected product and a 60% increase in its year-on-year central support costs. It also said its core e-commerce revenue remained broadly flat compared with last year.

Related Articles

The brand – which launched its first bricks-and-mortar store at Stratford Westfield in 2016 – said its strong levels of revenue were “insufficient” to cover its operating costs due to the outlets being “significantly too large”.

During the 53-week period, Missguided’s revenue rose from £205.8m to £215.9m.

Its statement said: “The year has been an extremely challenging one from which the brand emerges stronger and with a management team that has developed a sharper clarity on the key drivers of value within the business.

“During the year, in order to support and enable new growth, a fresh tier management was introduced to the business. We now believe that this development was premature, materially increasing the cost base and diluting the influence of our founder [Nitin Passi], particularly in the critical areas of product selection and inventory management.”

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.