Clothing retailer Boden has faced significant financial challenges, reporting a £9.4m loss in 2023, an increase from £3.9m in the previous year.
- Sales fell by 13% to £304.5m in 2023, following a downturn that extended from the latter part of 2022.
- Strategic changes in leadership and marketing were implemented in early 2023, stabilising performance later in the year.
- A shift back to catalogue marketing resulted in a 19% increase in full-price womenswear sales.
- Boden anticipates recovery with an 18% sales growth in 2024, supported by profitability and reduced discounting.
The past year has been a tumultuous one for Boden as the retailer grappled with escalating losses, which widened to £9.4m from £3.9m in the previous year. This decline echoed the wider trend of the second half of 2022, which carried over into 2023, resulting in a 13% fall in group sales to £304.5m.
In response to these challenges, Boden undertook significant strategic adjustments in early 2023. These included changes to the leadership team and a revised product and marketing strategy. However, these changes took time to manifest in stock, sales, and profitability, with stabilisation not apparent until the latter part of the year. The company acknowledged that the recovery process was hindered by long lead times inherent in the fashion industry.
A notable shift back to catalogue marketing was implemented, specifically targeting existing customers. This, alongside the introduction of new season ranges, was pivotal in achieving a 19% increase in full-price womenswear sales on a yearly basis.
As 2024 commenced, Boden reported an 18% rise in year-on-year sales, with womenswear showing a remarkable performance with a 35% increase, including a 47% surge in dress sales. Reduced discounting played a crucial role in bolstering the gross margin by seven percentage points, guiding the company back to profitability in the first half of the year.
Founder and creative director, Johnnie Boden, candidly admitted to having made significant mistakes, expressing gratitude towards the Boden team for their exceptional efforts in navigating the retailer back to its former status. He stated, “The brilliant team at Boden couldn’t have responded better, bringing Boden back to its very best.” Boden also extended his gratitude to loyal customers for their unwavering support.
Boden is on a promising recovery trajectory, demonstrated by improved sales and profitability in 2024.
