Dutch fashion group WE International saw its turnover drop 2.8 % to 275.8 million euro, but its net profit remained stable because of the selling of real estate.
Hoping for improvement
The owner of fashion chains WE and Van Gils has seen its turnover drop for a few years now: last fiscal year (that ended on 31 January) turnover dropped 2.8 % to 275.8 million euro. Seven years ago, turnover was still almost double as high at 475 million euro, FashionUnited reports. In its home market, WE saw its turnover go up from 163 million to 166 million euro, but the international turnover took a hit: 84 million to 77 million in the rest of Europe, 36 million to 33 million outside of Europe.
A part of the lower turnover comes from the closing of onerous stores, which do have part in keeping profits above zero: net profits were stable at 10.8 million euro as several real estate deals earned the company some extra money. Operational profit however was more than halved, going from 27.7 million to 12 million.
Still, WE thinks the future looks bright, as the company would be "better structured and better positioned for the future" and net results will follow. There will also be more "planned changes and improvements in 2018", the company promises.