Luxury fashion retailer Tory Burch has revealed a loss in its UK and German operations as a result of the COVID-19 pandemic. Despite a modest increase of 3.32% in sales, the company recorded a loss of £654,250 for the 12-month period ending in January, a stark contrast to the £42,000 profit it made the previous year. The significant decrease in profit can be attributed to various factors, including the rise in the cost of sales, which spiked from £7.9 million to £9 million due to currency exchange issues. Moreover, the closure of stores during the initial half of the year, prompted by strict lockdown measures, has further exacerbated the company’s financial struggles.

Tory Burch currently operates four stores in the UK, with prime locations on Regent Street and New Bond Street, as well as establishments in Westfield London and Bicester Village. In Germany, the retailer has a full-price store situated in Munich and another in Outletcity Metzingen. However, the closure of city center stores combined with a decline in tourist visits and reduced office workforce as a consequence of the pandemic have had a significant impact on visitor traffic, even during periods of eased restrictions. Consequently, the company faces uncertainty regarding its financial performance for the year, particularly with the imminent conclusion of the Brexit transition period in December.

Despite the challenging circumstances, Tory Burch remains committed to both the British and German markets and continues to receive support from its American parent company. Although it is unlikely that the sales for the current year will surpass expectations, the company maintains a positive outlook for the future. Tory Burch is optimistic about overcoming the obstacles presented by the ongoing pandemic and global economic uncertainties.

To learn more about Tory Burch and its operations, visit their official website: Tory Burch UK.

For further information on the impacts of the COVID-19 pandemic on the luxury fashion industry, visit this article: Business of Fashion.