Losses at Touker Suleyman’s menswear chain Hawes & Curtis widened to £2.6m in the year to December 2016, following depreciation “due to losses in a few stores as a result of Brexit”.
It blamed ”difficult trading conditions” in wholesale and UK retail markets for its downturn in growth last year.The retailer previously made a loss of £634,000 in 2015.
Total sales remained largely flat year on year for the 12 months to 31 December, dipping by just 0.4% to £25.5m. Like-for-like sales were up 14% but gross margin dropped 4% on the prior year due to the drop in the value of the pound.
The company said that as the commercial environment is expected to remain “very competitive and challenging”, it plans to invest in improving its online performances by encouraging repeat customer orders, particularly in the US and UK.
Suleyman added: “The brand is back on track, our margin is up on the year and we are looking forward to a promising future.”
As exclusively revealed by Drapers in July, Suleyman is in the process of closing seven Hawes & Curtis stores as he focuses on bigger flagships and ramping up it and his other fashion businesses online.
So far during 2017 the company has closed stores in Glasgow, Kingston and London Victoria.
Hawes & Curtis currently operates 21 stores. Yesterday it confirmed plans to open a new flagship on Oxford Street on 7 October, in which it will debut a made-to-measure suiting service.