Thomas Pink revamp bites into 2017 profits, revenue
today Oct 22, 2018
Turnover declined and losses have widened at UK shirtmaker Thomas Pink as the business prepared for a complete relaunch of the brand to elevate its product offering and positioning.
The decision to relaunch the brand in November this year impacted many areas of the business in 2017, its financial report for the year ended 31 December has showed.
Revenue for the period was £26.4 million, down 23.1% mainly due to a plan to stop bundle offers ahead of the new strategy to take the brand more upmarket.
Meanwhile, operating losses rocketed from £4 million in 2016 to £29.5 million as costs increased to prepare for the disposal of unsold inventory, the closure of stores and the termination of franchise agreements.
The reboot plan is expected to see the brand invest in its online and international channels in an effort to protect itself from the uncertain and potentially volatile UK retail market. Additionally, a number of franchise stores will close to allow the business to have more control over its own retail footprint.
The British shirt and suit retailer, owned by LVMH, said “strong investments” are being made for the reposition the brand “to the highest quality levels”.
Management warned that the strategic decision will continue to impact the company’s operating results throughout 2018, but that the upcoming relaunch in November will significantly restart sales.
Copyright © 2020 FashionNetwork.com All rights reserved.