A warehouse renovation gone awry has cost British luxury streetwear business END Clothing US $ 53.42 million.
According to records submitted to Companies House, END’s parent company Ashworth & Parker reported a pre-tax loss of US $ 53.42 million for the year ending in March 2024, down from a profit of US $ 11.18 million the previous year. This was due to a 3.8% decline in sales to US $ 264.23 million.
When a warehouse logistical blunder prevented the luxury streetwear store from shipping orders back in October, it was forced to write down US $ 14.91 million worth of stock. Impairments associated with the adoption of a new stock system were the cause of its decline in sales.
Its new automated fulfilment system, which was implemented in 2022, had “adverse effects on both our operations and customers’ ordering experience” due to logistical problems.
This week’s new accounts included expenses for consulting and the removal of outdated inventory. The company was burdened by these logistical mistakes, and a decline in demand compelled it to lower prices.
In an effort to “de-risk” its inventory exposure, the company has decreased its stock intake during the year. As a result, turnover has decreased 3.8% to US $ 264.23 million, but the inventory position has improved from US $ 115.16 million to US $ 77.02 million at the end of the year.
In terms of the future, END stated that it is in a good position to manage the current market climate, carry out our strategic business initiatives, and make sure the business stays positioned for long-term success.
