Ben Sherman sees first quarter sales drop by 30%
British brand Ben Sherman, part of American group Oxford Industries, suffered a tough year in 2012 with the departure of chief executive officer Pan Philippou and a drop in sales of 10%. 2013 does not look to be getting off to any better of a start.
For its first quarter ended May 4, net sales at the brand fell by 30% to 9.1 million euros (12.2 million dollars). Operational losses have almost doubled over the past year, now weighing in at 3.6 million euros (4.8 million dollars) against 2 million the previous year. Thomas Chubb, CEO of the group said: “With respect to Ben Sherman, we have realigned the leadership team and are pleased with the progress they are making on cost control as well as on the quality of our assortments and distribution.”
According to the boss, the management reshuffle will start to reap rewards in the second semester, bearing in mind that the company endured six months without a CEO before Mark Maidment took on the role.
Aside from Ben Sherman, Oxford Industries (Lilly Pulitzer, Tommy Bahama…) is faring well given the industry conditions. Overall, revenue saw a slight increase to 175 million euros during the first semester. Profit fell by 18% but remains positive at over 20 million euros. For the full year forecast, the group is expecting to make 700 million euros in sales against 641 million euros last year.
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