Footasylum: FY profits narrow despite increase in revenue

British footwear and sportswear retailer Footasylum has reported narrowing profit despite a 6 percent increase in revenue in its most recent full-year report.

The Rochdale, England-based company posted a net profit of 1.76 million pounds in the 12 months to January 28, down from 8.9 million pounds the prior year.

On a brighter note, gross profit widened to 139.1 million pounds from 132.6 million pounds.

The overall drop in net profitability came despite the company increasing its revenue in the year by 6 percent to 297.9 million pounds.

The retailer cited the lifting of lockdown restrictions compared to the prior-year period, with FY23 retail sales soaring 18.8 percent to 171 million pounds, and wholesale up 12.5 percent to 9 million pounds.

Conversely, online sales fell 8.5 percent to 118 million pounds as consumers flocked back to physical stores.

Footasylum said it is “not immune to the widely reported challenges to physical retail in the UK” and said it remains “conscious of the headwinds that prevail at this time including the general macroeconomic and geopolitical situation, and global inflation”.

Looking at the current year, the retailer said it is planning to increase its store base and store performance, “with continued growth in profitability”.

It continued: “The group will continue to focus on robust cost control; streamline and improve its internal and external delivery chain; drive savings opportunities; and invest in our omni-channel proposition.

“The board also continues to maintain its strong focus on cash and working capital management. Inventory will continue to be carefully managed throughout the period.”