Wallis troubles continue as Miss Selfridge makes modest profit

The Irish stores of the British women's fashion chains Miss Selfridge and Wallis enjoyed contrasting fortunes last year, as Wallis incurred further losses and Miss Selfridge returned to profit. However, both companies saw their Irish revenues decline in the year to the end of August.

According to accounts just filed by the Tina Green-owned companies, Wallis Retail (Ireland) Ltd recorded a £1.79 million (€2.12 million) pre-tax loss last year. The chain made a pre-tax loss of £3.5 million in the previous 12-month period.

Ms Green is married to retail tycoon Sir Philip Green, and they operate the Arcadia Group that also counts Topshop, Evans and Dorothy Perkins among its brands.

Modest profit
The figures for Miss Selfridge Ireland Ltd show that it recorded a modest profit of £26,000 (€30,887) following losses of £2.42 million in 2011.

The swing for Miss Selfridge, which targets younger female customers than Arcadia stablemate Wallis, was largely the result of a £2 million exceptional charge in 2011 not re-occurring in 2012. The chain’s Irish revenues reduced further in the period with sales declining by 9 per cent from £4.3 million to £3.99 million.

Staff decrease
Numbers employed by the firm last decreased from 83 to 80, with staff costs decreasing from £1.24 million to £1.15 million. The firm had accumulated losses of £1.64 million at the end of August 2012.

Wallis’s losses include a £1.67 million onerous lease provision for loss-making stores. Before the exceptional cost, the firm made an operating loss of £18,000 before interest and charges in the 12 months to the end of August 25th, 2012. This followed revenues at Wallis last year declining by 15 per cent or £2.2 million to £12.5 million.

The numbers employed by Wallis last year decreased from 219 to 206, with staff costs decreasing from £3.3 million to £2.8 million.

According to the directors’ report, “whilst the retailing environment in Ireland is highly competitive, the board is optimistic that the ongoing investment in stores and product will contribute to the company’s objective of growing both total and underlying sales”.

The directors cite further improvements to the supply chain, including tight stock and commitment management, as the “key to ensuring that gross margins are optimised going forward”.

The loss last year resulted in Wallis having accumulated losses of £470,000, while its shareholder funds stood at €1.82 million.