Shoe brand Clarks' profit plummets

In its past fiscal year, British shoe brand Clarks saw its operational profit drop considerably, mainly because of the difficult European and American markets.

Did not meet own expectations

Turnover grew 2.6 % to 1.533 billion pounds (1.9 billion euro), but its operational profit dropped from 112.7 million pounds (142 million euro) to 45.8 million pounds (58 million euro). It therefore failed to meet its own expectations: even though the company announced in September results in the second semester would be weaker than anticipated but would still be similar to last year’s performance, it did not even manage to live up to that adjusted forecast.

Clarks is currently restructuring the company, which already cost 170 people their jobs in February. It also wants to deal with issues regarding its increasing costs and stock management. It already merged its British and mainland European activities, just like it did with its American and its Asian activities.