Fashion retailer has jump in sales

LOSSES NARROWED at the Irish arm of fashion retailer Karen Millen last year. Accounts just filed by Karen Millen Ireland Ltd show that pretax losses at the women’s clothing chain fell to €300,000 in the year to the end of February 2011.

The company, owned by the Iceland-based Kaupthing Bank, recorded a €5.3 million loss in the 2010 fiscal year after a €5.2 million writedown.

Sales for the 56-week period amounted to €10.8 million, up 2 per cent on the €10.6 million recorded in the comparative 52- week period. The gross profit margin was 56 per cent (66 per cent in 2010) resulting in gross profit of €6.1 million.

In their report, the directors said the company will continue to focus on improving cash flow and margins in existing stores by increasing efficiency and managing risk.

The company had a shareholders’ deficit of €1.1 million at the end of last February. The directors said they will review the current net liability position at the agm and identify steps to be taken in order to recapitalise the balance sheet.

Numbers employed by Karen Millen last year increased to 118 from 103, with staff costs rising to €1.6 million, from €1.5 million.

Separate filings for fashion retailer Coast Stores Ireland, which is also owned by Kaupthing Bank, show that losses last year dropped sharply to €400,000 following a loss of €12 million in fiscal 2010 that included a writedown of €11.7 million.

The directors said that despite the difficult retail environment, total sales amounted to €10.3 million compared to €9.5 million – up 8 per cent. Gross margin was 61 per cent (67 per cent in 2010) resulting in gross profit of €6.3 million. Operating loss before exceptional items for the period amounted to €400,000.

The company’s immediate parent, Coast Holdings, waived a payment due of €28.5 million for no consideration. This resulted in the shareholders’ deficit falling from €28.6 million to €500,000 at the end of last February.