Fast fashion etailer Missguided has posted a surge in turnover, as well as substantial losses as a result of its warehouse relocation.
Turnover rose by 75.6% to £205.8m in the 52 weeks to 26 March, compared with the previous year. However, the etailer made an operating loss of £1.45m, in contrast with a £381,000 profit in 2015/16. The total loss for the financial year after tax stood at £1.39m.
Missguided said in accounts filed with Companies House that its exceptional costs for the year amounted to £2.04m, with its relocation to a new warehouse facility in Manchester accounting for £1.06m of these.
The etailer invested “heavily” in capital infrastructure after moving to the warehouse facility, which is managed by XPO Logistics, incurring £4.8m in fit-out costs. Further investment was made in its systems, websites and back offices.
It also said that the EBITDA loss of its retail operations, which are separately incorporated, stood at £2.4m after launching stores at Westfield Stratford and Bluewater during the year.
However, EBITDA before exceptional items surged by 44.5% to £3.7m. Sales at its wholesale business grew by 165%, while ecommerce grew by 40% in the UK.
The group launched its new menswear brand Mennace during the year, which initially sold through wholesale before its website launched in September after the year-end. It generated net sales of £200,000 and EBITDA loss of £100,000.
The company’s UK sales soared by 49.4% to £118.3m, while its business in the rest of Europe rocketed by 209.2% to £36.8m. Outside of these, its overseas business grew by 94.9% to £50.7m.