Brand house Marchpole expects to make a loss for the year to March 31 after tough UK and US trading hit sales.
However, it said in a statement this week: “Despite the progress we have made in all areas of our business, the difficult trading conditions in the UK and US have had an adverse impact on our sales and profit performance during this period. Therefore, the outturn for the year to March 31 2008 will result in a loss. The measures taken during the current period will put the company in a good position to increase its customer base and to take advantage of future profitable trading opportunities. We continue to focus on seeking licensing agreements for further expansion.”
Marchpole said it had made good progress in establishing the Emanuel Ungaro and Ungaro Homme diffusion labels as global menswear brands. The business also predicted that the restructuring of its US subsidiary Moda America would bring “significant cost savings and a reduction in the losses and stabilised current trading”.
Income from new licensing agreements for the Jean Charles de Castelbajac brand has increased, and a standalone store will open in Conduit Street in London at the end of spring.
Marchpole said its footwear subsidiary Greenmark and loungewear label Homebody were also progressing well.