Cost cuts push Karen Millen’s Irish business back to profit

The Irish arm of clothing retailer Karen Millen returned to profit as its digital business grew, despite a difficult retail environment and static sales.

In newly filed accounts, the company said sales for 52-week period from February 28th 2016 to February 25th 2017 were €5.9 million, the same as the prior year. Profit was €200,000 for the year, compared with breaking even a year earlier.

With sales remaining flat, profit was realised through cutting costs. The Irish subsidiary reduced its cost of sales by €100,000 to €2.4 million, and cut distribution costs to €3.3 million, compared with €3.4 million a year earlier.

Karen Millen Ireland has been on a quest to transform its business in recent times, concentrating its digital business as it invested in a new web platform. In the accounts, the company said its principal activity remains selling "beautifully crafted women's clothing, footwear and accessories".

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The group also appointed a new chief executive and chief financial officer during the period.

Staff costs for the year were just under €1 million. Karen Millen Ireland employs 63 people through a network of retail outlets.

The company is owned by defunct Icelandic bank Kaupthing.