Manchester-based fashion wholesale group Whispering Smith has reported declining sales and a loss in its accounts that it had filed for the year to the end of March.
Revenue dropped by 26 per cent to £ 51.3 million, according to the corporation, ‘representing a return to pre-pandemic, turnover performance.’
According to the statement, this led to excessive inventory on the side of its e-tailer partners, which temporarily decreased demand.
Its margins were also affected by the ‘huge spike’ in the cost of shipping goods into the UK. Additionally, the declining value of the US dollar caused ‘significant’ foreign exchange losses throughout the time period, adding insult to injury.
As a result, the operating loss increased from a profit of £ 3.8 million in the previous 12 months to £ 4.8 million and the gross profit dropped from £ 14.5 million to £ 8.5 million. From an earlier profit of £ 3.2 million, the total loss for the year was £ 4.2 million.
However, the business claimed that a return to profitability may occur the following year as a result of improved margins and a return to pre-pandemic freight costs while the GBP/USD foreign exchange rate is stabilising.
It has also been taking steps to boost its business, having introduced the brand Legacy Studios and acquired the Good For Nothing label to complement its existing and well-established, Brave Soul and Night Addict brands. The company said its leadership team believes that this enhanced portfolio increases ‘the economies of scope for the business and widens the target consumer base’.
