The Wiltshire-based retailer, encompassing Cotswold Outdoor, Runners Need and Snow and Rock, continues to face financial challenges.
- For the fiscal year 2023, a pre-tax loss of £7.3m was reported, following a loss of £3.9m in 2022.
- This retail group last experienced a pre-tax profit in 2015, accumulating over £110m in losses since then.
- Macroeconomic factors, including inflation and geopolitical tensions, have played a significant role in these financial setbacks.
- The company remains optimistic about overcoming these challenges as inflation eases and consumer confidence is expected to rebound.
The Wiltshire-based company, which owns well-known brands such as Cotswold Outdoor, Runners Need, and Snow and Rock, reported significant financial challenges for the fiscal year 2023. The company disclosed a pre-tax loss of £7.3m for 2023, which followed a £3.9m loss in the previous year.
Since its last pre-tax profit of £14.8m in 2015, the company has accumulated over £110m in losses. This marks a continuing trend of financial challenges for the retailer, which saw its turnover slightly decrease from £160.5m to £159.7m in 2023.
According to the company, the ongoing financial difficulties can largely be attributed to wider macroeconomic factors. A board-approved statement indicated, ‘The retail landscape in the UK throughout 2023 has continued to be impacted by the wider macro-economic and geopolitical environments.’ These include the impact of the Russian invasion of Ukraine, leading to significant global economic uncertainty and a period of increasing inflation.
Efforts to control this inflation through interest rate hikes by the Bank of England have been noted, although the full effect has yet to be felt in terms of bolstering consumer confidence. Despite some easing of inflation in 2023, it was not enough to make a substantial impact on consumer behaviour.
Despite these challenges, the company remains confident in its strategic direction. The directors expressed satisfaction with the business’s ability to navigate potential challenges and noted its resilience. They highlighted an expected rebound in consumer confidence as inflation continues to ease in 2024, stating, ‘The company feels that it is well placed to tackle these challenging conditions.’ They also noted an ongoing consumer interest in outdoor activities conducted in a sustainable manner.
The retailer remains resilient in the face of financial difficulties, anticipating improved consumer confidence and stability in 2024.
