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Clarks annual profit declines 43 percent

By Prachi Singh

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Business

Shoe retailer Clarks has suffered a setback due to weak pound and Brexit impact. The company’s profit nosedived 43 percent in the year ending January 31, 2017 to 20 million pounds (25 million dollars), reports Retail Gazette. However, the company said that its sales during the year under review, rose by 8 percent to 1.7 billion pounds (2.2 billion dollars).

“The greater uncertainty for Clarks from Brexit is the impact on the UK economy and specifically how consumers react to the expectation of lower economic growth and wage increases, and higher inflation,” Mike Shearwood, Clark’s new CEO was quoted saying in the company’s annual report.

The report adds that the rise in sales was achieved driven by positive performance of the company in the international markets and favorable currency effect. As a part of the company’s ongoing restructuring plan, over 60 jobs were cut at the retailer’s headquarters in Somerset. The report further said that the process also includes a review of its 550-stores under Shearwood who joined the company last year.

Picture:Clarks website

Clarks