Suitsupply continues further growth and expansion despite loss
Dutch suit maker Suitsupply has opened a record number of new stores in 2017. As a result, the company recorded a loss. However, the retailer is still determined to further grow the company and expand abroad in 2018.
In the year 2017, Suitsupply recorded a loss of €11 million, according to Dutch newspaper Het Financieele Dagblad, based on the company’s annual report. Suitsupply said in the annual report that the net loss is partly due to the fact that it opened an exceptional number of stores last year. In 2017 alone, Suitsupply opened 27 new branches. In addition, the label also launched a women’s line, SuiStudio.
Het Financieele Dagblad reported that Suitsupply is one of the few Dutch retailers to have continued its growth during the economic crisis. In 2017, the company also noted mostly positive results.
Last year, the revenue increased by 19% to € 255 million. The US turned out to be the most important market, as 41% of sales came from America, compared to 22% from the Netherlands. EBITDA, however, decreased from €25.3 million to €19.2 million. The EBITDA margin decreased from 12.2% to 7.8%, according to Het Financieele Dagblad.
In addition to the opening of new branches, Suitsupply also focuses on bringing in new talent. In recent months, the Dutch company hired former Bank of America Merrill Lynch managing director David Dijkhuis as Chief Financial Officer. Other new hires have come from brands such as Levi Strauss, Rag & Bone and Tory Burch.
Suitsupply was founded in 1999 as an online store by CEO Fokke de Jong, while still in college. The company opened its first physical branch a year later and landed abroad in 2007 with the opening of a store in Antwerp, Belgium. Over the years, Suitsupply opened stores across three continents and is currently focusing on the US and Asia.
To realize its expansion plans, Suitsupply received a €300 million loan, funded by NPM Capital; Dutch banks ING, ABN Amro and Rabobank; and French banking group BNP Paribas last year.
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