AllSaints, a prominent British contemporary brand renowned for its trendy leather jackets and sleek minimalist designs, is currently facing financial challenges as its profits plummet. Despite a reported 8% increase in sales, reaching £327m, the underlying profits have taken a significant hit, dropping from £26m to £10.6m in the fiscal year ending in February 2018.
The primary culprits for this decline in profits are the losses incurred from properties and a decrease in in-store sales, highlighting the tough environment faced by UK retailers. Back in 2011, AllSaints was acquired by the private equity firm, Lion Capital, for £105m, with Lion Capital expressing high hopes of elevating the brand’s sales to £500m within a few years.
In response to these financial hurdles, AllSaints has appointed Peter Wood as the new CEO following the departure of William Kim to the parent company. The brand is actively exploring avenues for growth, having recently inked licensing agreements with Global Brands Group and Revlon to expand into accessories and fragrances. Presently, AllSaints boasts over 240 stores worldwide, including franchises and concessions across 27 countries.
Despite the recent setbacks in profitability, AllSaints remains steadfast in its commitment to bolstering its brand and broadening its presence in the competitive fashion landscape. Only time will reveal if these strategic measures will be successful in reversing the financial downturn for this iconic British label.
For more information on AllSaints and its latest developments, you can visit their official website here. Additionally, for insights into the evolving fashion industry and retail landscape, you can explore the latest reports at Business of Fashion.
