Oasis and Warehouse profit rises as retailer mulls cuts
Oasis and Warehouse Group reported a return to profit in its latest full-year results as the retailer prepares to cut jobs and contracted hours across its store portfolio.
The high street chain said this morning that profit before tax was £1.6m, compared to a loss of £10.1m the previous year.
Total sales were up 6.5 per cent to £293.2m in the 53 weeks to 2 March, compared to £275.2m the previous year.
Read more: Warehouse and Oasis staff face redundancy as retailer cuts costs
Overall online sales increased 17 per cent, and now represent 30 per cent of sales overall. Total 52 week like-for-like sales were up 0.2 per cent and total turnover fell two per cent driven by the closure of unprofitable stores.
Warehouse returned to profitability on a full-year basis after a turnaround strategy was completed and the company finished implementing changes to Oasis’ store portfolio, which saw five new “local” stores opened.
The publication of the results comes after City PM revealed the company is preparing to make some staff redundant and cut contracted hours.
Staff have been told their hours could be cut as the company reviews its “retail operating model” across its store portfolio. A spokesperson for the retailer confirmed that the review may result in job losses.
The retailer blamed the proposed changes on the “challenging retail environment”, citing the need to review its cost base “in order to run an efficient business.”
Oasis and Warehouse chief executive Hash Ladha today said: “Headwinds and structural challenges will continue to impact UK retailers; these, coupled with the uncertainty of Brexit, will continue to have an effect on consumer’s spending behaviour making the trading environment difficult.
Read more: Oasis and Warehouse buy London menswear website
“I believe that we have two well invested, innovative brands which continue to resonate with customers’ and continue to remain modern and relevant.
“Whilst we do not expect conditions to materially improve in the medium term, our continued focus on efficiencies combined with our strategy to continuously drive product innovation, brand and customer experience positions us well for the future.”
Main image credit: Getty