Tory Burch UK swings to small profit as sales continue to accelerate
today Oct 9, 2019
Tory Burch’s UK and German operations swung to a small profit in the year to January after making a loss the year before. And the firm’s sales continued their run of rises.
Pre-tax profit was £83,856, better than the loss of £506,371 in the previous year. Post-tax profit for the year was just £41,910, but it was a marked improvement on the 2017 loss of £791,602. That 2017 loss had also been narrower than in the prior year.
Meanwhile sales last year rose 22.3% to £24.158 million from £19.753 million, slower than the 28.1% leap of a year earlier but impressive nonetheless.
Gross profit was £16.229 million, up from £12.359 million a year ago. And just as pre-and post-tax profit reversed the prior year’s loss, so did operating profit which swung to earnings of £65,374 from a loss of £236,782 in fiscal 2017.
The US-based designer label’s UK-based operation has three full-price stores in London on Regent Street, on New Bond Street and in the giant Westfield London mall, as well as one outlet at tourist magnet Bicester Village. It also has a full-price store in Munich, Germany and an outlet in Metzingen.
The company had little to say about how the UK business is going, but it did say that the Brexit situation is still too uncertain to be able to predict the outcome. It believes it’s “impossible to asses in detail the opportunities and threats” that Brexit could present, if it happens this year. But the directors “are managing risks by closely monitoring developments” and are confident that the company will be able to deal with what’s ahead. It added that its parent company is committed to supporting the ongoing operations of the firm.
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