Luxury retailer, Matchesfashion has announced a major loss of £5.9m for the financial year ended 31 January 2020.
A report filed at Companies House found that while revenue soared to over £430m for the period, compared to £372m the previous year, the cost of sales, administrations, and distribution outweighed the inflows.
The group’s adjusted EBITDA also decreased throughout the financial year, falling from £14.7m in the year ended 31 January 2019 to just £4.5m.
Since the year end, Matchesfashion has also had to contend with the “exceptional challenges posed by Covid-19”, which resulted in the furloughing of 29% of its staff.
The report, signed by Ajay Kavan, the new CEO at the company, said: “Our physical retail stores in London have been closed since 23 March 202 and planned brand and customer events have been cancelled.
“The production plans of the brands [we work with] were disrupted by the crisis and this is resulting in delays in receiving new season product. We expect that this will impact trade for the remainder of the financial year.”
The group hopes to mitigate any liquidity risk by generating cash via its operations, as well as continuing to invest in e-commerce and logistics.