Footasylum, the British retailer, has released its financial results for the year ending January, revealing a rise in revenue but a decline in profits. Despite challenges, the company saw its revenue increase to £298 million from £281 million. However, it also faced an increase in the cost of sales by approximately £10 million.

Gross profit saw a modest increase to £139 million from £132 million, but administrative expenses rose by nearly £13 million, and exceptional items amounted to £4.47 million. It’s worth noting that the company received government relief of £6.2 million related to the pandemic in the previous financial year, which had a significant impact on its profit.

As a result, operating profit dropped to £6.47 million from £14.8 million, and profit before tax decreased to £2.8 million from £11.1 million. The net profit also saw a significant decline to £1.76 million from £8.9 million in the previous year.

Footasylum experienced a shift in sales channels during the latest financial year. Physical sales accounted for 57% of revenue, increasing from 51%, while online sales accounted for 40%, down from 46%. Sales through wholesale remained unchanged at 3% of revenue.

The company attributes this shift in sales channels to the recovery of store-based retail as the pandemic subsided. However, it remains cautious about the challenges faced by physical retail in the UK. To address this, Footasylum plans to implement cost control measures, streamline its delivery chain, and identify opportunities for savings.

Despite the challenges, Footasylum highlights the importance of its physical stores alongside its digital operations. It aims to engage with consumers through both channels and plans to expand its store base and enhance store performance to increase profitability. In May, the company announced the opening of a flagship store on London’s Oxford Street, catering to the strong demand for its branded streetwear offerings.

Footasylum was acquired by German asset management company Aurelius after an acquisition attempt by JD Sports was deemed anti-competitive. Despite the decline in profits, Footasylum remains focused on adapting to the changing retail landscape and leveraging its physical and digital presence to drive growth.

For more information, please visit:
1. Footasylum Official Website
2. Aurelius Official Website