Footwear retailer’s profits and sales up – despite US slowdown in spending
Clarks, the UK’s largest shoe retailer and the world’s leading non-sports shoe brand, has reported profits of £47.5m ($68.24m) for the year ended January 31 2001. The figure was recorded in spite of increased discounting in the US, where consumer spending is falling.
The Somerset-based retailer, which owns the US brands of Bostonian and Hanover and K Shoes and Ravel in the UK, also reported a 5% increase in sales to £876m.
Said chief executive Tim Parker; "Our 175th Anniversary year was marked by volatile conditions in major markets across the world. Given the extent of profit warnings in the UK retail sector and a deteriorating trading environment in America, this was a pleasing result."
The UK business, dominated by its retail shop portfolio comprising over 500 stores, recorded a 3% like-for-like improvement in sales. The Children’s business continued to make headway while the Ravel chain of fashion shops made a welcome return to profit.
Overseas, the International branded wholesaling operation achieved a 12% increase in despatches, with particular progress being noted in the Asia Pacific region, Spain and the Benelux countries. In North America, where Clarks retains it own wholesale and retailing operation, the much-heralded downturn in consumer confidence did have some impact in the second half. Nevertheless, sales still rose by 21% for the year to £228 million.
The company announced further exceptional restructuring activity during the year, including the closure of its factory in Weston-Super-Mare in the UK and a reduction in its manufacturing operations in Portugal. Last month, Clarks announced the acquisition of Elefanten; the major children’s shoe brand in Germany, from Freudenberg, in a deal worth £23 million.
According to the latest figures from consultant Taylor Nelson Sofres, in the UK market Clarks has 8.8 per cent of the men's shoe market, 12.2 per cent of the women's shoe market and 30.5 per cent of the children's shoe market. The business is one of the UK’s largest private companies with more than 15,000 employees world-wide.
