Monsoon reports fall in full-year sales and profits

UK-based Monsoon saw its full-year EBITDA fall to 20.3 million pounds (26.3 million dollars) or 16.4 percent from 24.3 million pounds (31.4 million dollars) last year, reports Retail Week. It further added that sales at the company dropped to 422.1 million pounds (547 million dollars) or 9.2 percent against 464.9 million pounds (602 million dollars) in the previous year.

Chief Executive Paul Allen told Retail Week that despite the company witnessing a tough trading during the year, he was optimistic about the result of Monsoon’s turnaround strategy.

Like-for-like sales in the UK down 6 percent

The company reported 6 percent drop in UK like-for-likes sales while total sales in the UK declined 6.8 percent to 311.9 million pounds (404 million dollars).

The company’s international business also suffered a setback during the year with total revenues from its overseas stores and franchisees decreasing 15.5 percent to 110.2 million pounds (142 million dollars).

As a part of its turnaround plan, Monsoon decided to exit from underperforming markets such as Singapore, South Korea and Venezuela. The company continues to expect tough trading conditions in the international markets, where it has presence, specifically in the Middle East.

Retail Week report said that the important initiatives of the company’s turnaround strategy includes separating the identities of the Monsoon and Accessorize brands, reshaping its property portfolio, adding new retail points such as shop-in-shops in Debenhams, developing its online reach and strengthening the management team.

Picture:Monsoon website