High-end fashion label End. reports £43.2m loss amid macroeconomic pressures
- End. reports pre-tax loss of £43.2m
- Revenues down 3.8% to £212.7m
- Challenging retail landscape due to macroeconomic pressures
- Positive pre-exceptional EBITDA of £6m (down from £28.1m)
- Inventory intake reduced from £92.7m to £62.0m
- New appointments in leadership team
- Expansion of merchandising team and consolidation of store offerings
High-end fashion and streetwear label End. has reported a pre-tax loss of £43.2 million, down from a profit of £8.8 million for the year ended 31 March 2024. The group’s revenues plummeted 3.8% from £221 million to £212.7 million. The company attributed the decline to challenging retail landscape both in the UK and abroad, with high inflation and elevated interest rates affecting consumer spending. Despite a positive pre-exceptional EBITDA of £6 million (down from £28.1 million), End. took proactive steps to reduce inventory intake throughout the year, improving its inventory position from £92.7 million to £62.0 million. The company also strengthened its leadership team with new appointments, including a chief buying and merchandising officer and chief operating officer, and invested in the expansion of its merchandising team to better manage inventory. End. consolidated two store offerings in Newcastle into a single flagship store, housing the full product range. The label stated that it continues to invest in capabilities for future growth, supported by long-term strategies with key brand partners and operational improvements.
Factuality Level: 8
Factuality Justification: The article provides accurate information about End.’s financial performance, including losses, revenue decline, and the company’s efforts to reduce inventory intake and consolidate store offerings. It also mentions the challenges faced by the retail industry due to macroeconomic factors. The information is relevant and objective without any clear signs of sensationalism or personal opinion.
Noise Level: 3
Noise Justification: The article provides relevant information about End.’s financial performance and the challenges faced in the retail industry, as well as steps taken by the company to address these challenges. It also offers some insights into the company’s future growth strategies.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the financial performance of End., a high-end fashion and streetwear label, reporting a pre-tax loss and reduced revenues due to macroeconomic pressures such as inflation and interest rates. It also mentions the company’s efforts to reduce inventory intake and improve operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and it does not meet the criteria for an extreme event as it focuses on a company’s financial performance and changes within the organization.
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