The retailer has announced that it plans to permanently close around 40 to 50 stores this year.
The retailer has seen a $270.9M loss which is 18.9 per cent down from the previous years $105.7M net income. Alongside this, gross profit has fallen 30.8 per cent to $265M and has been attributed to a lower footfall across stores due to the ongoing effects of the Coronavirus pandemic. Despite this and the decision to close a number of store locations, the clothing retailer has actually surpassed analysts’ expectations, largely due to an increased number of e-commerce sales.
The 40 to 50 stores that are set to close were “chosen based on lease tenure, mall profile, proximity to other stores, and customer engagement levels.” said Chief Financial Officer Mike Mathias, noting that nearly 250 leases are set to expire this year and again next year. Mathias continues: “Our flexible lease portfolio will allow us to quickly exit locations that no longer make sense.”
