During the fiscal year ending in January, Matches reported a 1.68% dip in revenue, reaching £380.1 million. Factors such as the uncertainties surrounding Brexit, cautious consumer sentiment, and rising interest rates impacted the bottom line. The company also transitioned from wholesale to concessions for several key fashion labels in the previous fiscal year.
Nonetheless, the company achieved a substantial 12% growth in orders, excluding cancellations and returns, driven by a resurgence in occasionwear. This led to a revenue increase from £677.1 million to £758.2 million year-over-year.
The company did report an expanded adjusted EBITDA loss, rising to £33.7 million from the prior year’s £25 million. However, the gross profit margin saw positive growth, reaching 33.5% from 32.7%. The operating loss was £67.2 million compared to £37.5 million the previous year.
The current fiscal year, set to conclude in the coming January, indicates marked improvements in vital markets, such as the UK and the US.
Nick Beighton, the former ASOS chief who assumed leadership at Matches during this period, emphasized, «While we acknowledge the challenges in this demanding environment, we are confident that we are on the right path with our turnaround plan. Our commitment is to transform Matches into a more robust and profitable business.»
Guided by private equity firm Apax, the company has undergone a management shake-up following the departure of CEO Paolo de Cesare. Under Beighton’s leadership, strategic appointments have been made in finance, commercial, and product/technology.
With a clear three-year turnaround strategy, Beighton is optimistic about Matches’ progress and readiness for the crucial festive season. The company’s future plans also involve streamlining its brand portfolio by reducing the number of brands from 600 to around 450 by the end of the next year, further sharpening its focus.