Luxury retailer Matches has faced a decline in sales and an increase in losses, but the e-tailer is making strides in its efforts to turn things around. In the year leading up to January, revenue dropped by 1.68% to £380.1 million due to several factors, including Brexit, cautious consumers, and rising interest rates. The company’s shift from wholesale to concessions for prominent labels in the previous financial year also had an impact. However, despite these challenges, orders rose by 12%, with occasionwear sales increasing from £677.1 million to £758.2 million.
Despite the positive aspects, Matches reported an adjusted EBITDA loss of £33.7 million, wider than the £25 million loss from the previous year. However, the company did see a rise in gross profit margin to 33.5% from 32.7%. The operating loss for the year was £67.2 million, compared to a loss of £37.5 million in the previous year. Matches did mention that the current financial year has shown improvement in key markets such as the UK and US.
Nick Beighton, the former ASOS chief who took over as CEO of Matches during the financial year covered by these results, recognized the challenges the company faces but expressed confidence in the turnaround plan and the actions taken to become a stronger and more profitable business. Matches, owned by private equity firm Apax, has made changes to its management team, including the appointment of new leaders in finance, commercial, and product/technology.
Beighton has implemented a three-year turnaround plan for Matches and believes that progress is being made. He stated that the company is well-prepared for the crucial festive season and intends to refine its brand portfolio by reducing the number of brands carried. Matches has already decreased from 800 brands to 600 and aims to further refine it to approximately 450 by the end of next year.
– Matches Fashion