×
33 129
Fashion Jobs
NORDSTROM
Loss Prevention Security Ambassador Long Island Rack
Permanent · Garden City
NORDSTROM INC
Loss Prevention Security Ambassador King of Prussia
Permanent · King of Prussia
NORDSTROM
Loss Prevention Agent West Oaks Rack
Permanent · Novi
NORDSTROM INC
Loss Prevention Security Ambassador Chandler Festival Rack
Permanent · Chandler
NORDSTROM INC
Operations Manager - San Bernardino, ca
Permanent · San Bernardino
NORDSTROM INC
Loss Prevention Agent - Tysons Corner
Permanent · McLean
NORDSTROM
Loss Prevention Security Ambassador Troy Market Place Rack
Permanent · Troy
PACSUN
E-Commerce Photo Studio Manager
Permanent · Anaheim
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · Grand Junction
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Conway
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Asheville
KOHLS
Full-Time Loss Prevention Officer
Permanent · Yuba City
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Las Vegas
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Waite Park
THE ESTEE LAUDER COMPANIES
Keyholder - Cosmetic Company Store - Part Time - Columbus Outlet Center - Columbus, oh
Permanent · COLUMBUS
L BRANDS
Asset Protection Officer, Broad st - 2nd Shift (3pm -11pm)
Permanent · Reynoldsburg
VICTORIA'S SECRET
Brand Operations Manager-Alamance Crossing
Permanent · Burlington
VICTORIA'S SECRET
Brand Operations Manager-University vt
Permanent · South Burlington
PINK
Brand Operations Manager-Gurnee Mills
Permanent · Gurnee
VICTORIA'S SECRET
Associate Merchandise Planner, Victoria's Secret Beauty
Permanent · New York
DARPHIN
Coordinator, na Ecommerce - Darphin
Permanent · New York
RAG & BONE
Sales Supervisor (Full-Time) - Manhasset
Permanent · Manhasset
Published
Mar 5, 2021
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Stella McCartney losses widened pre-pandemic, says recovery will be "gradual"

Published
Mar 5, 2021

Stella McCartney’s full year results on Friday showed falling sales and wider losses for the 2019 financial year. However, given the year of change that the firm saw in 2019, it’s unclear just how much we can read from the figures.


Stella McCartney - Fall-Winter2020 - Womenswear - Paris - © PixelFormula



Perhaps more relevant was the fact that the firm said its business was “materially impacted” by the Covid-19 outbreak in early 2020 and it expects the recovery in its sales levels over the medium term to be “gradual”. This is particularly disappointing given that prior to the outbreak, it said it was making “good progress” in delivering against its strategy.

It added that its digital sales performance has been good in the past year and it has continued to operate in all markets without interruption because of that. But online sales can't fully offset the decrease in demand seen during the period that physical shops were closed. This time next year we should perhaps expect a bigger sales drop and wider losses, although the company hasn’t said as much.

It doesn’t seem to think Brexit will be an issue going forward, saying less than 5% of its global revenue occurs through its physical stores depending on cross-border movement of goods to the UK. Additionally the vast majority of its goods are made within the EU or the UK so will benefit from the tariff and quota-free deal struck as part of the UK’s EU exit.

And it’s clear that it has sufficient funds to get through the crisis period, based on the commitment from its parent company, Anin Star Holding Limited, to continue to make the money it needs available.

That parent company took full control during the financial year being reported on as part of the deal announced in spring 2018 for Stella McCartney to buy the remaining 50% of Stella McCartney Limited shares from Kering that she didn’t already own. The transaction completed in July 2019 with Anin Star, of which McCartney owned 100% at the time, acquiring all of the shares. Since then, a subsidiary of LVMH has acquired 49% of the parent firm.

So what actually happened in the 2019 financial year? The company saw sales falling to £38.19 million, from £42.59 million a year earlier. The 10% decline compared with a 0.2% increase in the previous 12 months. And it saw a pre-tax and post-tax loss of £31.92 million compared to a £10.88 million pre-tax loss and £10.98 million post-tax deficit in the previous year.

It's perhaps unsurprising that this happened given that 2019 saw a “substantial” increase in the cost of sales and administrative expenses. And it being the year in which its ownership change completed is likely to have had an impact.

In fact, the change of ownership changed the company’s revenue model. Until 2018, it had received royalties on wholesale sales from fellow group companies. But from 2019, this has been replaced by an arrangement between Stella McCartney Ltd and Stella McCartney Italia SRL to share residual profits or losses between the two entities.

It looks like we may have to wait until next year to get a clearer picture of what's happening, although as mentioned, that will also include the full impact of the pandemic so will be somewhat skewed. Hopefully, by the time those results are released, the company will also have plenty of more upbeat news to share about 2021 trading and the post-pandemic recovery later this year.

Copyright © 2021 FashionNetwork.com All rights reserved.