The Latest Performance Updates From Major Brands
Today we will explore some of the latest announcements and results from major brands across the fashion and retail market. This is of particular importance to those of us working in connected industries, such as fashion photography studios in London and across the UK. There are some clear signs of the challenges fashion faces and brands taking advantage of the economy moving away from the pandemic.
Financial reports don’t entirely explain the position a brand is in but do offer us a benchmark by which to measure their current success or failure, as well as the outlook for the future.
The headline figure from Boohoo Groups’ latest results is a significant pre-tax loss of £90.7 million. This is for the year leading up to the 28th of February 2023, on top of a drop in sales of 11% (£1.77 billion). The fashion brand stated that this performance should be viewed within the bigger picture of significant improvements since 2020 when the pandemic started and a more positive outlook for 2024.
Two of the key factors in this loss for last year were increased returns and more shoppers deciding to go back to physical stores. Boohoo has taken steps to reduce inventory levels and expects to see a drop in revenue for the first half of the year before seeing relatively low growth of up to 5% for the second half of their financial year.
Leading footwear brand Asics has reported a revenue rise of 30.2% for Q1 of 2023 when we compare year-on-year for its EMEA business. If we look at net sales, they set another record for the first quarter by hitting £891 million. This is a 44.6% increase when compared to the previous year.
Looking across the different departments, there has been clear and profitable growth for running, tennis and indoor brands. This is echoed by wholesale results across different markets, with France seeing a 69.5% increase, Italy a 57% increase and Germany a 39.2% increase. This is great news for fashion photography studios working across the EMEA.
In a similar announcement to Boohoo, ASOS announced a drop in sales and losses but this time for the second half of the year leading up to the 28th February 2023. Headline figures include a drop in sales to £1.84 billion (7%) and pre-tax losses rising up to a huge £290.9 million from £15.9 in the previous year.
One of the key drivers for these figures is the ASOS turnaround plan that includes large write-offs of stock. With sales down across all regions across the world, they still maintain their plan is on schedule for turning around the online retailer.
It is clear that retail and fashion brands are still recovering from changing consumer habits after the pandemic and a rising cost-of-living crisis. However, not all is lost as some are starting to show signs of a turnaround. The question now is whether these strategic plans will be successful and it will take time to answer.