Whispering Smith

Sep 29, 2023

By Sep 29, 2023 Manchester-based fashion wholesale group Whispering Smith has reported declining sales and a loss in its accounts that it had filed for the year to the end of March. Whispering Smith The company said that revenue fell by 26% to £51.3 million, "which represents a return to pre-pandemic, turnover performance". It added that the trading backdrop became more challenging coming out of the pandemic as its portfolio of customers “is underpinned by strong e-tailer presence”. We've already heard a lot about how online retailers struggled more than expected as physical stores reopened post-Covid and this has clearly had a big impact on the company. It said the situation resulted in excessive inventory on the part of its e-tailer partners, resulting in a temporary fall in demand. It was also hit by the "huge spike" in the freight cost to import goods into the UK, which eroded its margins. And to add to the misery, the falling US dollar exchange rate resulted in "significant" foreign exchange losses in the period. The end result of this was that gross profit fell to £8.5 million from £14.5 million a year earlier and the operating loss was £4.8 million, a swing from a £3.8 million profit in the previous 12 months. The final loss for the year was £4.2 million, down from a profit of £3.2 million previously. But the company said that a return to profitability next year is possible as margins will improve and the cost of freight will return to pre-pandemic levels, while the GBP/USD foreign exchange rate is stabilising. It has also been taking steps to boost its business, having introduced the brand Legacy Studios and acquired the Good For Nothing label to complement its existing and well established, Brave Soul and Night Addict brands. The company said its leadership team believes that this enhanced portfolio increases "the economies of scope for the business and widens the target consumer base". Copyright © 2023 FashionNetwork.com All rights reserved. Tags :