Fenwick has suffered widening losses and falling sales in a what is described as an “extremely challenging” year, Retail Week can reveal.
The department store retailer posted a pre-tax loss of £47.3m in the year to January 31, 2020, compared to £44.2m the previous year.
On an operating basis, before exceptional items and changes in property values, Fenwick trimmed its losses from £17.3m last year to £11.8m.
Fenwick’s net sales declined 9% year-on-year to £271.5m and gross margin declined at a similar rate.
The results do not cover the period of the coronavirus outbreak in the UK and Fenwick said: “Due to the impact of Covid-19, we anticipate that the business will make a sizeable loss in the coming year.
“The group has put in place a two-year secured borrowing facility as part of its contingency planning and to ensure sufficient funding.”
A spokeswoman added: “These results reflect the difficult trading environment which retailers faced even before the pandemic. While sales declined, there were a number of positive areas including in beauty and food, and we continued to roll out our online offer, which has since grown significantly.
“Covid-19 has brought huge challenges for Fenwick and the sector. We are performing better than we hoped, online and in-store, and continue to have strong financial foundations. We look forward to continuing to serve our local communities with a premium, personalised and safe shopping experience.”
Shortly after the period covered in the results, Fenwick chair Richard Pennycook and chief executive Robbie Feather both exited the business. The latter was succeeded by former Selfridges finance boss John Edgar.
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