Profits decline at Karen Millen but rise for Oasis
Revenues at Karen Millen up 5% last year but fell 4% at the sister fashion retailer
The former Karen Millen shop on Grafton Street. Photograph: Dave Meehan
Pre-tax profits at the Irish arm of fashion retailer Karen Millen halved last year to €100,000.
The drop comes despite revenues increasing 5 per cent, from €5.9 million to €6.2 million, in the 12 months to the end of February 24th last.
The directors’ report states that the year under review has been a period of operational stabilisation for the Karen Millen Group, and that digital business grew significantly year on year following investment in the web platform.
The directors state that other initiatives that have been implemented include improving the product collection, further rationalisation of the shop estate and efficiency and cost-saving initiatives.
The directors state that the group’s objectives are to return to sustainable profitable growth and to optimise return for its shareholders.
The Irish business emerged from examinership in 2015 after entering the process in November 2014. This followed years of sales decline - in 2011 it had recorded sales of €10.8 million.
Separate accounts for connected fashion retail firm Oasis Fashions Ireland Ltd show that pre-tax profits increased 63 per cent from €1.1 million to €1.8 million in the 12 months to the end of February 2018.
The profit increase came despite revenues declining 4 per cent to €18 million against what the directors describe as “a difficult retail environment”.
Numbers employed by the Oasis business totalled 230 and staff costs last year amounted to €2.6 million.
Another well-known fashion retail brand, Warehouse Fashion Ireland, last year broke even after recording losses of €300,000 in the prior year. Revenues declined 9 per cent to €6.2 million. The business employed 94 and staff costs totalled €1.2 million.
All three fashion retail businesses are owned by the Icelandic Kaupthing Bank.