Clarks results fail to meet adjusted forecast

Published:  16 June, 2016

The British footwear manufacturer and retailer has attributed a drop in turnover to fierce discounting on both the high street and the internet as well as to problems at its American arm. 

Clarks’ turnover increased 2.6% to €1.9 billion, however, its operational profit dropped from €142 million to €58 million (-65%), failing to meet the adjusted forecast after the September results, and despite a 2.6% increase in turnover in 2015 fiscal year ending January 31, 2016. 

Around 170 jobs were lost last February as part of the company’s current restructuring strategy. Clarks says it also wants to deal with issues such as increasing costs and stock management.

Just like its American and Asian operations, the company has merged its British and mainland European activities.