Suitsupply suffers losses because of expansion

Suitsupply suffers losses because of expansion

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

 

Nearest target: 100 stores

The chain opened 27 stores last year, its highest number so far. The company’s growth has been remarkable: it was founded as an online store in a student flat, back in 2000. It quickly opened physical stores and opened its first store abroad in 2007 (in the Benelux' fashion capital of Antwerp, Belgium). The chain now approaches 100 stores worldwide, across 24 countries, from the Middle East to Australia and Latin America.

 

Suitsupply currently has 33 stores in the United States, but it will open another two shortly in Boston and Saint Louis. Founder Fokke de Jong does not care about the idea that American youngsters do not want costumes: 41 % of its turnover already comes from the American stores, almost twice as high as its Dutch turnover. 

 

The chain did pay a price for that expansion however: it generated a 3.2 million euro profit in 2016, but that plummeted to a 11.4 million euro net loss in 2017. However, it also posted a 19 % turnover growth to 245.6 million euro.