UK fashion brand Reiss sees 26% drop in profit despite rise in sales

Source: https://apparelresources.com

UK’s fashion brand Reiss registered an increase in full- year sales but attributed its “transitional year” for a fall in EBITDA by 26 percent to £ 14.2 million.

Sales at Reiss grew 4.6 percent to reach £ 172.2 million in the fiscal year ending February 3, but recorded drop in profits as a result of its “transitional year” which included product availability issues, the weakening pound and an investment drive for its website.

The firm also incurred a non-cash impairment provision of £14.2 milliion due to several under performing overseas stores and £2.1 million of exceptional re-organisation costs during the year. The fashion retail chain had “revitalised and evolved” its customer offer.

Besides in early 2018, Reiss signed a global shoe and accessories licensing agreement with Global Brands Group (GBG), a franchise agreement with South Korean department stores Shinsegae and new wholesale accounts with Nordstrom in the US and in El Corte Inglés in Spain.

“I am confident that GBG’s strong product development and sourcing skills across footwear and bags, coupled with their extensive global distribution network will allow Reiss to create more great product and reach more customers around the world,” maintained Christos Angelides, who was appointed as Reiss CEO in 2017.



Categories: Asia, Brands, Business, Retail, United Kingdom, USA

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