Online Fashion Retailer Struggles with Expansion Costs
- Missguided posts £46.7m loss for financial year ending April 2018
- Loss increased from £1.6m in 2017
- Significant investment to exit poorly selected product
- 60% increase in central support costs
- Core e-commerce revenue flat compared to last year
- Revenue rose from £205.8m to £215.9m
- First bricks-and-mortar store opened in 2016
- Stores were too large and expensive
- Management team developed sharper clarity on value drivers
Online fashion retailer Missguided has reported a loss of £46.7 million for the financial year ending April 2018, up from a loss of £1.6 million in 2017. The company attributed the increase to significant investments in exiting poorly selected products and a 60% rise in central support costs. Its core e-commerce revenue remained flat compared to the previous year. Despite opening its first physical store at Stratford Westfield in 2016, the brand said that its stores were too large and expensive. Revenue increased from £205.8 million to £215.9 million during this period. The company stated that it emerged stronger with a clearer understanding of business value drivers.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Missguided’s financial results, including losses, revenue, and reasons for those losses such as investment in exiting poorly selected products and increased central support costs. It also mentions the opening of a physical store and its impact on the company’s finances. The article is mostly focused on the facts without any sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Missguided’s financial results and the challenges faced by the company, but it could benefit from more analysis or context on the factors affecting the fashion retail industry as a whole.
Financial Relevance: Yes
Financial Markets Impacted: The financial results of Missguided, an online fashion retailer, impact its investors and stakeholders.
Financial Rating Justification: This article discusses the financial performance of Missguided, an online fashion retailer, which has posted a significant loss compared to the previous year. This information is relevant for anyone invested in or following the company’s financial health.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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