Office has recorded a steep decline in its full-year profits as sales were hampered by House of Fraser’s collapse and the wider consumer spending slowdown.
The footwear specialist posted a 40% fall in pre-tax profit in the year to July 1, 2018 to £15.4m, exacerbated by a 4% decline in sales to £285.5m.
The retailer said it is owed £700,000 in sales from House of Fraser concession and added that “according to the administrators it is unlikely that this amount will be received by the company”.
Office, which operates a store network of 116 stores and 40 concessions, also attributed its sales and profit declines to dampened consumer demand.
The retailer’s gross margin during the period was 44.4%, down from 46% during the previous financial year, which was “mainly as a result of the increase in markdown sales during the period”.
The footwear retailer said despite “continued concerns over Brexit and depressed consumer demand” it intends to “continue expansion of [its] integrated multichannel business”.