Boden, the clothing and lifestyle retailer, reported substantial financial losses for 2023, yet hints at recovery prospects for 2024.
- The company’s losses widened to £9.4 million in 2023, compared to a £3.9 million loss in the previous year.
- Group sales dropped 13% to £304.5 million for the year ending December 2023, following poor performance in late 2022.
- Changes in leadership and strategy in early 2023 took time to impact sales, but stabilisation occurred in the latter half of the year.
- Major improvements in womenswear sales and reduced discounting have started to drive profitability in 2024.
Boden reported a significant financial loss of £9.4 million for 2023, contrasting with a £3.9 million loss in 2022. The company cites a downturn in performance from late 2022 that lingered into 2023, impacting overall sales. Despite these challenges, Boden maintains optimism about its recovery, suggesting positive developments in 2024.
Group sales saw a decline by 13%, amounting to £304.5 million by the end of 2023. The decline was attributed to a continued downturn experienced in the latter half of 2022, which extended into the next year. Boden took action in early 2023 by altering its leadership and revising its product and marketing strategy, aiming to revitalise the business.
These strategic shifts, however, took time to influence stock and sales, with performance stabilising only in the second half of 2023. A renewed focus on catalogue marketing and new product ranges tailored for existing customers resulted in a 19% increase in full-price womenswear sales year on year.
In the first half of 2024, Boden reported promising sales growth of 18% year on year, led predominantly by a 35% increase in womenswear performance. This was supported by a notable 47% rise in dress sales. The reduction of discounting practices has also been favourable, enhancing the gross margin by seven percentage points and contributing to profitability.
Johnnie Boden, the founder and creative director, acknowledged his past mistakes, attributing the company’s return to form to the team’s efforts. He remarked, “The brilliant team at Boden couldn’t have responded better, bringing Boden back to its very best.” Boden thanked both the team’s resilience and customer loyalty for the turnaround.
Boden is cautiously optimistic about its financial recovery, driven by improved sales and strategic changes in early 2024.
