Dutch suit maker SuitSupply has improved dramatically from last year: its net loss is almost gone, and it found new capital to continue growth.
SuitSupply saw its turnover rise 16 % to 336.2 million euros, with almost half of its revenue coming from the United States. Second in line is its home market the Netherlands, with a share of 17 % in total revenue. The company has 128 stores in 27 countries.
Profits showed signs of progress as well: the company’s ebitda went up from 19.3 million euros in 2018 to 29.6 million euros last year, net profit almost disappeared – decreasing from 9.6 million euros in 2018 to just 1.8 million last year.
Recovery after pandemic
More recently, the Covid pandemic caused most of SuitSupply’s stores to close temporarily, and demand for suits dropped as people started working from home more. In order to keep afloat, SuitSupply had to find forty million euros in fresh capital.
The company was handed three quarters of that amount through a bank loan, the other ten million euros came from an injection by NPM Capital – which already was a shareholder. In order to be safe, twenty million euros is kept in reserve – equally divided between the banks and CEO Fokke de Jong himself.
De Jong says he thinks this reserve will not be needed, as turnover is already returning to its normal values in Europe and Asia. The situation in the United States remains worrisome, however: “We have to assume this is not over yet”, he told Quote, but the current capital should be enough – even if recovery turns out to be slower than expected.