Shoe retailer Clarks has announced a significant increase in store profit.
According to Clarks, an Asian private equity firm has offered it a £100 million rescue package.
The 197-year-old company saw a rise in revenue to £920.3m.
This occurred in the fiscal year ending in January 2022 and represents an increase of 18 percent from £775 million the previous year.
Additionally, profit after tax increased from a loss of £180.2 million in 2020–2021 to £55.4 million.
Jon Ram, the former CEO of New Balance, was named the new CEO of Clarks in March.
Clarks claimed that despite the pandemic’s continuing effects on the global supply chain, it was able to deliver a year of “recovery and repositioning.”
Bosses credited a combination of reduced discounting through its online and reopened stores for the company’s return to profitability.
Less overhead expenses are the result of its ongoing “transformation programme.”
A spokesperson for Clarks said: “Although the global economic climate remains uncertain, we’re pleased to report a steady recovery and increase in consumer demand across all our markets, with profit after tax of £55.4 million.
“In the current financial year, we’ve appointed a new CEO, Jon Ram, and we are focussed on a business strategy designed to grow our business in current and new markets, and to build a foundation for sustainable growth in the years ahead.”
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The company announced in May 2020 that it would eliminate 900 jobs as part of its “made to last” business revival strategy in response to the pandemic.
In February 2021, Hong Kong-based LionRock Capital closed a deal to acquire the majority of the company for £100 million.
By doing this, according to Clarks, it was able to turn around the company, save jobs, and maintain stores.
Source: Business Live