London-based fashion retailer Matchesfashion has reported widening full-year losses as it continues to feel the impact of the pandemic.
For the 12 months to January 31 2021, the company made an operating loss of 34.7 million pounds, compared to a loss of 3.7 million pounds a year earlier, while its net loss widened to 36.6 million pounds from 5.9 million pounds the prior year.
It came as the luxury retailer’s revenue dropped by 9.6 percent to 392 million pounds for the year.
Going concern warning
The company, which has already twice agreed on covenant waivers with HSBC and Wells Fargo, issued a going concern warning.
“The uncertainty as to the future pact on the group of the Covid-19 pandemic, and resulting uncertainty in the global economy, has been considered as part of the group’s and company’s adoption of the going concern basis,” it said.
“Covid-19 had a material impact on the operations of our business in 2020 leading to delays in receiving good form suppliers and changes in the demand pattern of customers.
“Whilst there is now greater experience dealing with the impact of the Covid-19 pandemic it remains an area of uncertainty as do the consequences of Brexit which have impacted the first months of 2021 with delays in receiving and sending goods as we as the additional duties and extra operational costs.”
Matchesfashion appointed luxury and retail veteran Paolo de Cesare as its new CEO in September, replacing Ajay Kavan who exited the company in March after just a year in the role.
De Cesare, who spent 12 years as president and CEO of Printemps Group, said at the time: “I am confident that, with the rapid transformation and growth of the luxury market, we can continue to strengthen our position as a fashion pioneer, thereby deepening our historic brand relationships and becoming the most exciting luxury destination for our customer.”
Matchesfashion began its days as a single store in Wimbledon over 30 years ago and has since grown into a global e-tailer with an edit of over 600 designers, delivering to over 176 countries.