THE IRISH arm of Monsoon Accessorize has slipped into the red, recording a pretax loss of €2.38 million in the year to August 27th, 2011, according to recently filed accounts.

This compared with a pretax profit of €5.63 million a year earlier.

Revenue from the Irish outlets of the women’s fashion chain Monsoon and its sister retailer Accessorize shrank by 16 per cent to €25.9 million in the 2011 financial year.

This drop in sales at the firm’s 21 Irish stores more than wiped out the savings made from a reduction in the cost of sales, which fell from €7.35 million to €5.25 million.

At the operating level – before depreciation, impairment and exceptional items – Monsoon Accessorize Ireland Ltd made a profit of €1.97 million, down 61 per cent on the €5.05 million reported in 2010.

The company took an exceptional charge of €3.28 million last year in respect of “onerous leases” and payment for surrendering leases on outlets no longer trading. In a note contained in the accounts, the directors said trading conditions remained tough and the economic outlook in Ireland uncertain.

They added that management continued to consolidate and make savings, while also investing in the brand through improved product ranges, stores and marketing.

The average number of people employed by Monsoon Accessorize Ireland dropped to 163 in 2011, from 180 a year earlier.

An interim dividend of €11.35 million was paid to the group’s UK parent, well ahead of the €454,500 paid in 2010. No final dividend was paid in either year.

The company sells clothing for women and children, as well as accessories, homeware and gifts.

Founded by Peter Simon, the first Monsoon opened in Knightsbridge in 1973 and the first Accessorize in Covent Garden in 1984.