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‘Challenging’ year for Clarks

15/06/2016
Footwear brand Clarks posted a 65% drop in pre-tax profits for the year to January 31, 2016 on the back of changes in the retail sector, tough competition and more demanding customers. The UK-based company said the period was “one of the more challenging in recent history” as it released figures showing pre-tax profit fell from £98.8 million to £35 million.

Sales increased 26% in 2015, however, to £1.53 billion but operating profit decreased from £112.7 million to £45.8 million. Clarks’ revenues were driven by strong performances in the UK and the Republic of Ireland, where turnover increased from £637.4 million to £654.4 million. 

The Americas was the region that saw the greatest decline in revenue, down from £625.9 million to £559.6 million. There was growth in Europe, where turnover rose to £159.7 million from £145.5 million and in the Asia-Pacific region which saw an improvement to £135.6 million from £125 million the previous year.

Clarks is still without a chief executive and chief financial officer after both stepped down in September 2015. CEO Melissa Potter had been with the brand for 27 years prior to her departure and was removed, along with CFO Robin Beacham, as the company felt that “new leadership” was needed to “overcome the challenges ahead”.

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