Boden has announced that its recovery strategy is making progress despite significant losses reported last year.
- The retailer’s losses more than doubled to £9.4 million in 2023, compared to the previous year.
- Sales dropped by 13% to £304.5 million due to a downturn starting in late 2022.
- A leadership reshuffle and strategic changes in 2023 were slow to reflect in financial results.
- Improved sales and profitability in early 2024 indicate a positive turnaround for the company.
Boden, the clothing and lifestyle retailer, has stated that its recovery is ‘well underway’ despite its losses more than doubling over the past year. In 2023, the company’s losses grew to £9.4 million, a steep rise from £3.9 million the previous year, according to financial reports. This downturn was largely attributed to a sharp decline in performance during the second half of 2022, which extended into 2023.
The company’s sales also saw a decline, dropping 13% to a total of £304.5 million. This drop was driven by persistent challenges that carried over from late 2022, impacting the overall sales performance into the following year. Despite these setbacks, Boden has expressed optimism about its recovery trajectory, pointing to rising sales and profitability in the initial months of 2024 as positive indicators of its turnaround efforts.
To steer towards recovery, Boden undertook a substantial reshuffle of its leadership team and implemented modifications to its product and marketing strategies in early 2023. However, these changes took time to manifest in stock availability and sales figures. Nevertheless, the company reported stabilization in performance during the latter part of 2023, boosted by a strategic return to catalogue marketing and the introduction of new season ranges targeted at its existing customer base.
A notable outcome of these efforts was an impressive 19% increase in full-price womenswear sales, along with an 18% rise in overall sales during the first half of 2024. This growth was significantly bolstered by a 35% surge in womenswear performance, with dress sales alone seeing a 47% rise. Reduced discounting also contributed to an uplift in gross margin by seven percentage points, marking the company’s return to profitability.
Reflecting on the challenges faced and the ensuing recovery, founder and creative director Johnnie Boden acknowledged past missteps but praised his team for their response. He stated, ‘I made a series of serious mistakes and felt like a fool. The brilliant team at Boden couldn’t have responded better, bringing Boden back to its very best.’ He emphasised the slow nature of transitioning ranges in the fashion industry but assured that the company is back on track with improved sales and profitability in 2024.
Boden demonstrates signs of recovery with improved financial metrics in early 2024, highlighting effective strategic shifts.
