Profits slide at Oasis, Warehouse after owner calls off sale
Fashion chains Oasis and Warehouse struggled to make money in the year to 25 February 2017, with both brands reporting a fall in profit just weeks after their owner called off a sale.
Oasis, the group’s high street womenswear brand, saw sales grow 1.3% to £151m during the period, but profit after tax dropped 52% to £2.9m, according to City AM.
Meanwhile Warehouse, which offers an edgier womenswear concept, reported a 13% decline in turnover to £106m, down from £124m the year before. The brand is trying to reinvent itself to regain its former popularity, but the efforts coupled with the sales fall meant it widened its pre-tax loss to £12.3m from £1.1m in the prior year.
Mid-market brand Coast also forms part of the portfolio. The brand, which is in the final year of a three-year turnaround plan, reported its best performance in five years, with profits rising from £1.4m to £2.9m, said City AM.
In its strategic statement, Coast said: "The business continued to maintain a tight, disciplined control of its cost base with further exits from loss-making stores.
"A good year of sales performance together with significant margin improvement and strong wholesale and franchise growth now gives Coast a very solid base from which to drive forward.”
Oasis, Warehouse and Coast are part of Aurora Fashions, a group which is majority-owned by the administrators of failed Icelandic bank Kaupthing. The group started looking for a buyer for the brands in 2016, but called off the sale last month after insisting the market “does not currently recognise the value” of the companies.
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