Missguided has reported an operating loss of £37.7m for the 53-week period to 1 April 2018, from a profit of £580,000 in 2016/17.
It posted an EBITDA before exceptional items loss of £26.5m, down from £3.7m the previous year, resulting in a £46.7m loss after tax.
Turnover was up 4.9% to £215.9m.
The etailer cited “premature” investment in fresh management and “significantly too large” retail store proposition for an “extremely challenging” year.
Founder Nitin Passi told Drapers: “2017/18 was a tough but necessary year for the business. We’ve addressed the areas we needed to and have already turned the bottom line around. The business is rebooted, refocused and re-energised, and we’re excited to return to growth in 2019.”
Missguided opened its first 20,000 sq ft store in Westfield Stratford City in November 2016, and a second 16,000 sq ft store in Bluewater shopping centre in June 2017.
However, the etailer conceded that, while stores had “strong absolute revenue, it was insufficient to cover their operating costs”.
A full strategy review was conducted in early 2018, and the current financial year has been marked as a year of transition to “clear the remaining low-quality stock and focus on returning the core ecommerce channel to growth”.
The news comes as Nicola Tibbs was appointed as head of digital, following the departure of chief digital officer Jonathan Wall last month.