Schuh swings to loss in an “extremely challenging” year

Schuh has announced through a statement that after a second consecutive year of extremely challenging conditions for retail, the company reported fall in turnover by over 20 million pounds to 288.4 million pounds (370.7 million dollars) for the year, despite a decent increase in online sales, masking a considerable drop in store sales. Pre-tax profits fell from 13.1 million pounds to a loss of 6.1 million pounds (7.8 million dollars).

Commenting on the results, David Gillan-Reid, Finance & HR Director, Schuh, said: “We have been faced with an unprecedented number of trading headwinds, including: increasing occupancy (rent, rates and service charges) and staff costs (minimum/living wage, apprenticeship levy, pension autoenrolment costs etc.), Brexit uncertainty/political instability, and consumer spending being lower on footwear and apparel. We are navigating our way through these demanding times and remain optimistic of our future, but only with engagement from our landlords and the business.”

Schuh shuts German operation

In the current year, Schuh has closed down its German operation of three trading stores, while the company said, hand-back of two of the store leases was successfully negotiated and we remain optimistic on the third. The company further said that Schuh Germanlanguage website continues to trade as part of the UK Company, but a final decision on the winding up of the German entity will take place shortly.

Schuh recently appointed former New Look executive, Nicola Monachello as the new Buying Director, who will oversee the existing sports, kids, fashion, and Schuh own label buying teams while working closely with key brand partners to redefine and reengineer the buying strategy.

Picture:Facebook/Schuh

 

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