Retailer Attributes Losses to Higher Costs and Price Discounting
- Losses widen to £11.7m in FY23
- Revenues rise 26% on pre-pandemic levels
- Like-for-like sales up 17.3% during the financial year
- Gross profit margins drop from 33% to 31.9%
- Higher costs of goods and freight costs impact profits
- Price discounting in stores and online
- Sales growth expected to exceed pre-pandemic levels by FY24
- CFO Jamie Messham optimistic about Christmas trading
- CEO Alex Simpkin cites Covid and Ukrainian conflict challenges
- New 1.2 million sq ft distribution centre in Stowmarket
- Acquired Wilko brand and relaunched online
- Introduced Wilko products in stores
The Range has reported a widening loss of £11.7 million in the financial year ended January 2023, despite a 26% increase in revenues compared to pre-pandemic levels and a 17.3% rise in like-for-like sales. The retailer attributes this to higher costs of goods purchased and freight costs, as well as more price discounting in stores and online. However, the company expects profits to surpass pre-pandemic levels by the end of FY24. The Range’s CFO, Jamie Messham, expressed optimism for the Christmas trading period. CEO Alex Simpkin cited operational challenges from Covid and the Ukrainian conflict during the financial year. The retailer has also opened a new 1.2 million sq ft distribution centre in Stowmarket and acquired the Wilko brand, which it relaunched online and introduced in stores.
Factuality Level: 8
Factuality Justification: The article provides accurate information about The Range’s financial performance, including losses, gross profit margins, and sales growth. It also mentions the impact of Covid-19 and the Ukrainian conflict on the retail sector. However, it includes some promotional language in quotes from executives, such as ‘full of optimism’ and ‘best-in-class facility,’ which may be seen as slightly exaggerated.
Noise Level: 3
Noise Justification: The article provides relevant information about The Range’s financial performance and future plans, including the reasons for the losses and their expectations for growth. It also mentions the acquisition of the Wilko brand and its expansion plans.
Financial Relevance: Yes
Financial Markets Impacted: The financial performance of The Range retailer
Financial Rating Justification: This article discusses the financial results and challenges faced by The Range, including losses, changes in gross profit margins, and their expectations for future growth. It also mentions their acquisition of the Wilko brand and expansion plans.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event happening within the last 48 hours. The article discusses financial challenges faced by a retail company due to Covid-19 and the Ukrainian conflict, but these are not considered extreme events.
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