• Full-year EBITDA plunges 59% to £19.3m
  • Total sales fall 8.6% to £434m  
  • Monsoon blames weather and discounting

Monsoon’s profits have plummeted following a “very disappointing” year, as sales fell owing to poor weather conditions and discounting.  

The fashion retailer, which appointed its first-ever chief customer officer this month, revealed that EBITDA plunged 59% to £19.3m in the year to August 29, 2015. 

Total sales in the period fell 8.6% to £434m. The retailer did not disclose a like-for-like sales figure.

Overall, Monsoon recorded a net loss of £617,000 for the year, compared with a profit of £18m the prior year.

The retailer said its womenswear continued to perform poorly and blamed the adverse weather conditions, which have affected many fashion retailers and “significant levels of discounting and competition”.

International markets were affected by political volatility and the negative effects of exchange rates, it said.

The retailer, which appointed interim chief executive Paul Allen on a permanent basis in January, launched a strategic turnaround plan last year.

The plan includes refocusing its three brands (Accessorize, Monsoon Ladies and Monsoon Children) in the UK and reshaping its UK store portfolio and its international presence, to focus on Europe and the Middle East.

It is also closing loss-making stores.

Monsoon said it took steps through the year to “rationalise certain under-performing franchise markets through closure and to reorganise the relationship with the Norway and Middle East partners”.

Looking ahead, the retailer said profits are “likely to remain depressed in the current year”. However, it said the the board has “confidence” it can return to previous levels of profitability.