Monsoon Accessorize plunged into the red last year after experiencing what founder Peter Simon described as the “most difficult time” in the retailer’s 40-year history.
The fashion and accessories retailer made a group operating loss of £4m in the year to August 25, 2012, on the back of a £60.1m profit the previous year.
Group EBITDA fell 59% to £46.9m due to “poor” trading, discounting and lower sales and margin.
Group sales, excluding Russia, which reports through a separate trading company, fell 12% to £529.3m, with the UK and Republic of Ireland seeing turnover tumble 10%.
The retailer placed its Irish business into examinership last month after experiencing three years of losses.
However, since the year-end Simon told Drapers’ sister title Retail Week that the retailer had seen signs of recovery, recording a 20% surge in EBITDA after improvements were made to ranges and cost controls.
Simon said: “Like most other fashion retailers, we saw a sharp decline in sales throughout the year, caused largely by the deteriorating economic environment in the UK and the wider world.”
Nevertheless, he added that through product improvement the retailer has “strengthened [its] resolve against the discounting experienced during this last year”.
He said the retailer would also continue to expand overseas to drive growth: “We see a significant demand for our products in a growing number of overseas markets.”
Monsoon Accessorize overhauled its management team this year, with former Dixons boss John Browett joining as chief executive in March.
He is expected to focus on growing the retailer’s online business and building its international presence.