Losses at Vivienne Westwood, plans to streamline portfolio
today Oct 1, 2019
Vivienne Westwood may have grabbed some headlines in recent days due to Paris Fashion Week, but the headlines this week make less happy reading with the company reporting a £2.5 million pre-tax loss for last year.
It had been profitable the year before, making £1.9 million in 2017, but this time, the loss came as turnover was down by 4.9% at £38.8 million after the company closed two of its physical stores. That said, wholesale edged up, albeit by only 0.22%.
So what does that all mean for the future? Well, the company is looking closely at its business and said that “we are reviewing the lines currently available with the objective of streamlining the portfolio.” It added that it will keep a close eye on costs.
It’s a path trodden by many labels in the luxury segment as they seek a way to make sustainable profits in a fast-changing retail world.
But the company seems reasonably upbeat saying that the brand “continues to remain attractive to its wider customer base and sales continue to be consistent. The focus remains on improving the existing stores and repositioning the brand perception of the various Vivivenne Westwood lines.”
And the company is still heavily focused on international expansion, targeting growth in key markets such as China and the US, as well as Europe and Asia in general. France, Italy and Germany are in its sights as far as boosting existing market share is concerned.
It also said that while it can’t yet assess the impact of Brexit on its business, it has strong operations in Europe and should be able to weather any storm if there’s a no-deal exit from the EU.
Copyright © 2020 FashionNetwork.com All rights reserved.