Suitsupply sinks deeper into losses

Dutch suit manufacturer Suitsupply has suffered a substantial loss in the past year. Due to the Covid crisis, there was hardly a demand for tailor-made suits, jackets or shirts.

Record loss

Suitsupply saw its turnover fall by 39 % to 205 million euros, Quote writes. Consumers bought significantly fewer business outfits and party attire because many people worked from home and, parties and events got cancelled. Of course, the chain also suffered from mandatory store closures during the lockdowns. Online turnover, however, grew by almost 3 million euros. The company posted an operating loss of 19 million euros and a net loss of almost 110 million, driven by one-offs. By comparison, net loss in 2019 was only 1.8 million euros.

The company also experienced dark days in the first quarter of 2021: sales were barely 55 % of the 2019 level. In an attempt to stem the bleeding, Suitsupply had to discontinue its women’s brand Suistudio, among other things, and let some sixty employees go.

CEO Fokke De Jong nevertheless sees the light at the end of the tunnel: “I expect that we will close this year profitably again. Our expansive growth has only been halted by Covid. Q1 was poor, but the two quarters that followed were very strong. If there are no new measures, growth will continue, and the results will normalise.”