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Missguided sales rocket but it goes into the red

Fast fashion etailer Missguided has posted a surge in turnover, as well as substantial losses as a result of its warehouse relocation.

Turnover rose by 75.6% to £205.8m in the 52 weeks to 26 March, compared with the previous year. However, the etailer made an operating loss of £1.45m, in contrast with a £381,000 profit in 2015/16. The total loss for the financial year after tax stood at £1.39m.

Missguided said in accounts filed with Companies House that its exceptional costs for the year amounted to £2.04m, with its relocation to a new warehouse facility in Manchester accounting for £1.06m of these.

The etailer invested “heavily” in capital infrastructure after moving to the warehouse facility, which is managed by XPO Logistics, incurring £4.8m in fit-out costs. Further investment was made in its systems, websites and back offices.

It also said that the EBITDA loss of its retail operations, which are separately incorporated, stood at £2.4m after launching stores at Westfield Stratford and Bluewater during the year.

However, EBITDA before exceptional items surged by 44.5% to £3.7m. Sales at its wholesale business grew by 165%, while ecommerce grew by 40% in the UK.

The group launched its new menswear brand Mennace during the year, which initially sold through wholesale before its website launched in September after the year-end. It generated net sales of £200,000 and EBITDA loss of £100,000.

The company’s UK sales soared by 49.4% to £118.3m, while its business in the rest of Europe rocketed by 209.2% to £36.8m. Outside of these, its overseas business grew by 94.9% to £50.7m.

Missguided previously reported in May that turnover for the period rose by 75%, on the back of marketing campaigns featuring influencer Baddie Winkle and collaborations with model Jourdan Dunn.

Readers' comments (3)

  • Should have outsourced then?

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  • It's not what you take, it's what you make. Some companies never learn.

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  • or.....turnover is vanity....profit is sanity

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