British footwear retailer Clarks has posted a decline in profits after tax and turnover for the 48 weeks to December 2022 as supply chain issues took a toll on trading.
Clarks reported operating profit of £31.7m for the 48 weeks to December 31, 2022, up 53% compared with the 52 weeks to January 29, 2022, while profit after tax was down 28% at a total of £22.6m.
The retailer posted a 2% decline in turnover from £511.9m to £502.8m, which Clarks attributed to being unable to fulfil the post-pandemic surge in demand as a result of global supply chain issues during the first half of the year.
Clarks said the supply chain issues caused “late delivery of product, intermittent quality issues and reduced availability of stock”, but added that conversion across direct-to-consumer channels which fell below plan was offset by increased selling prices as a result of pricing initiatives.
The retailer said that during the second half, direct-to-consumer trading “softened” from October as the cost-of-living crisis and high inflation caused “more price-sensitive customer behaviour”.
In terms of declining profits, Clarks said as its stores reopened following the pandemic and it no longer received government support, in the form of business rates grants and furlough credits, its overheads increased as a result.
Clarks also named former Under Armour global vice-president of retail Bob Neville as its new managing director for the UK and Ireland in July this year.
The figures published by Companies House for C&J Clark International – which covers the retailer’s operations in the UK, some of the wholesale business in Europe and its wholesale business in Asia – are part of the group’s wider figures, which were initially published in May.
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