Austin Reed losses widen

Austin Reed losses widen

Austin Reed has suffered a £2m pre-tax loss for the year to end January, compared to a £1.3m loss in the previous year. This news comes alongside figures indicating that the British retailer did, however, achieve a sales rise of 3% (to £121m) in the same timeframe.

It was also reported that the company lost out on “onerous lease provisions” to the tune of £3m, but did make a £973,000 profit on an operating basis, which was only slightly inferior to the previous year.

The retailer commented: "The group continues to be exposed to the risks of the economic downturn in the UK which has led to reduced consumer demand and reduced income.”

On the rising price of raw materials – particularly wool – it continued: “The economic success story in China continues to cause inflationary pressure. Also, although the increase in the price of cotton has abated, other raw material prices, notably wool, continue to increase, creating upward pressure on prices in the Far East where we source much of our product. The company will continue to balance the need to offer a quality product at an acceptable price whilst maintaining margin."