High Street Struggles Impact Retailer’s Performance
- 55% profit drop for Russell and Bromley in the year to 31 December 2017
- Turnover dipped by 6% to £100.6m
- Operating profits fell 63% to £6.6m
- Foreign exchange rates mitigated potential losses
- Debt-free and sufficient cash balances for working capital requirements
- Plans to close Oxford Street and Kensington stores
- Closed stores in Bournemouth, Bromley, Salisbury, and Westfield London
Footwear retailer Russell and Bromley has reported a 55% drop in profits for the year ending 31 December 2017, marking its third consecutive year of falling profits. The company’s turnover also decreased by 6% to £100.6m during the same period. Despite these challenges, Russell and Bromley has managed to mitigate potential losses due to advance preparations for foreign exchange rate fluctuations. The retailer remains debt-free with sufficient cash balances to meet its working capital requirements and plans to continue investing in maintaining store standards while seeking new locations and closing non-performing stores. Recent closures include those in Bournemouth, Bromley, Salisbury, and Westfield London.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the company’s financial performance, challenges faced by the retailer, and its plans to close certain stores. It also mentions that the company is debt-free and has sufficient cash balances. However, it lacks some details on the specific reasons for the decline in profits and could provide more context on the retail sector’s overall situation.
Noise Level: 3
Noise Justification: The article provides relevant information about the company’s financial performance and its plans to address the challenges it faces, but lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses the financial performance of a retail company, its profit decline, and its impact on store closures and investment decisions, which are relevant to the financial industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text
www.retailsector.co.uk