Footasylum issues profit warning
Footasylum is engaged in a programme of cost reductions following a drop in margins due to discounting over the peak season. Total revenue rose by by 14 per cent to £102.3 million for the 18 weeks running up to December.
“In the context of the current tough conditions on the high street, we are encouraged to have delivered revenue growth across all of our channels and major product categories, with online and wholesale continuing to perform particularly well,” Footasylum's executive chairman Barry Bownaid said. "We have also been pleased by the performance of the five new store openings and three up-sizes that we completed in time for Christmas.
“However, the short-term outlook is undeniably challenging, and we continue to maintain our focus on cash, working capital and inventory management, as well as reducing costs across our operations. The current trading conditions have led to significant discounting and promotional activity across the sector, and this in turn has impacted our gross margin expectations for full-year 2019.”