Clarks reports falling revenue and profit

C&J Clark International Limited, owner of the British shoe brand Clarks, published financial statements for the 48 weeks to December 31, 2022, which show a decrease in both turnover and net profit of the company, writes fashionmagazine.it.

Turnover fell 2% to £502,8m, while operating profit rose 53% to £37,1m. Net profit fell 28% to £22,6 million. These results can no longer be directly attributed to the impact of the pandemic, however, according to company management, the surge in demand that followed the end of the pandemic was not met due to problems in the global supply chain. which arose in the first half of the year. This resulted in delays in the delivery of finished products, intermittent quality problems and low inventories.

In addition, direct trade with consumers has decreased since October. The rising cost of living and high inflation in the UK have made consumers more price sensitive and cautious about spending. The decrease in profit in the reporting period was due to an increase in overhead costs and the fact that a year earlier one-time government assistance related to the pandemic was reflected in the financial statements.

It is worth noting that Clarks is actively working to attract new consumers. Thus, in the fall-winter 2023 season, the brand will collaborate with the famous American brand of bags and travel accessories Eastpak. At London Fashion Week, several shoe models were presented, created by Clarks with the participation of the brand's first guest creative director, Martine Rose, The brand announced a collaboration with the English-Jamaican designer in May 2023.