Nick Stowe, the chief executive officer of Monsoon Accessorize, has said that he is expecting the British retailer to return to profit in 2025, after what he called a “painful” financial year.
Speaking to Drapers, Stowe said that by the end of the current financial year, Monsoon Accessorize is forecast to be in the high single-digit or low double-digit EBITDA, after reporting a 2.2 million pounds loss for the year to August 31, 2024.
The uptick is being driven by the company’s core UK Accessorize business and its Monsoon Women’s business, which he said “performed well despite the challenging environment”.
Stowe added that “strong cash generation from these core businesses enabled Monsoon Accessorize to end the year with 15.6 million pounds cash on hand and zero debt”.
Stowe attributed the “painful” losses seen in 2023/24 to rising running costs, the UK’s cost of living crisis, an outdated Monsoon kidswear offer and the liquidation of franchisees in two regions: Italy and Saudi Arabia.
Monsoon Accessorize did enact somewhat of a turnaround plan by bringing in a new dedicated buying team for its children’s category, closing some of its dual Accessorize Monsoon stores and trialing new retail formats, like travel and small boutiques.
The group further invested seven million pounds in retail, technology and operations initiatives during the year, notably in its warehouse management system, omnichannel operations and store updates.
Stowe concluded by saying: "We're bouncing back. Things are growing. I wouldn't say everything is perfect. We complain about all the cost increases, which are shocking and the economy is still rough, but it's going well."