Tory Burch UK, the British arm of the American fashion brand, has reported higher sales for the year ending January 2022, indicating a recovery from the impact of the Covid-19 pandemic. Despite facing the lingering effects of the global health crisis, the company managed to improve its sales performance. However, the headline profit declined primarily due to accounting issues rather than a weaker overall performance.
The turnover for Tory Burch UK witnessed a significant increase, jumping from £10 million to £14.3 million, while the gross profit rose from £5.7 million to £9.2 million. These positive developments showcase the brand’s ability to rebound from the challenges posed by the pandemic. However, the operating profit dipped significantly, plummeting from £3.7 million to £738,707, and the pre-tax profit also took a hit, declining from £3.9 million to £994,384. The net profit also saw a decline, dropping from £3.8 million to £736,995.
Tory Burch UK operates three full-price stores and one outlet store in the UK, in addition to a similar store setup in Germany that falls under the jurisdiction of the UK business. The stark difference in profit figures between the latest year and the previous period can be attributed to an impairment assessment carried out in 2020 for the assets associated with the UK stores, prompted by the pandemic. At that time, an impairment charge of £4.68 million was recognized. However, management reevaluated the situation in the current year and concluded that market support payments from the brand’s main company should be allocated to individual cash-generating units. This led to the reversal of the impairment charge recorded in 2020.
Unfortunately, no specific information has been provided by Tory Burch UK regarding the subsequent progression of the year or its performance since then.
Useful links for further reading:
1. Tory Burch UK Official Website
2. Global Apparel Market Size by Region – Statista
