AllSaints USA, the North American subsidiary of the popular British fashion brand, has released its financial results for the 12-month period ending February 1, 2020. The company experienced a notable increase in turnover, reaching $155.8 million, compared to $143.5 million the previous year. Furthermore, it achieved significant growth in operating profit, which rose from $2.3 million to $9.5 million, and EBITDA, which increased from $10.6 million to $36 million. However, AllSaints USA recorded a net loss of $10.2 million, in contrast to a loss of $273,000 in the previous year.

This surge in turnover can be attributed to both the growth of like-for-like sales and expansion into new markets. The company acknowledges that its operating profit was influenced by its arrangements with the parent company, All Saints Retail Limited. Although further details were not provided, it is worth noting that the Covid-19 pandemic had an impact on the company’s operations. In fact, AllSaints USA underwent a company voluntary arrangement for its US stores during the summer of 2020.

Despite the challenges presented by the pandemic, AllSaints USA remains committed to prioritizing the safety of its customers and staff while adapting its business model. The company is optimistic about rebounding in 2021 and resuming its growth trajectory. In compliance with governmental restrictions, all stores in the US and Canada were temporarily closed in March 2020. Although they reopened in June, these stores have been subject to local state lockdowns and restrictions since then.

To mitigate the negative impact of physical store closures, the company has placed significant emphasis on strengthening its digital operations. In the first half of the current financial year, online sales and customer base growth exceeded figures from the previous year. Nevertheless, the closure of physical stores has had a substantial effect on the company, leading it to take measures to preserve cash flow and liquidity. These measures include pausing discretionary spending and reducing the salaries of senior leaders.

In addition, AllSaints has sought assistance from the government and maintained open lines of communication with its lenders. Despite these efforts, the prolonged lockdowns significantly affected the company’s liquidity position during the summer months. Consequently, AllSaints USA opted for a company voluntary arrangement for its North American stores, enabling them to eliminate rent liabilities and align future rents with sales performance, pending approval from creditors.

Although the company believes it has developed a more resilient operating model to navigate the ongoing effects of the Covid-19 pandemic, it acknowledges the uncertainty surrounding long-term changes in consumer behavior. AllSaints USA anticipates that footfall will continue to be suppressed in the foreseeable future, indicative of a potentially protracted recovery period.

Useful links:
1. AllSaints USA Official Website
2. COVID-19 Information – Centers for Disease Control and Prevention