Clarks has cut more than 1,200 jobs as the shoe retailer reported a pre-tax loss of £39.2m for the financial year 2024, according to newly filed accounts with Companies House. The Somerset-based company saw its workforce drop from 7,413 to 6,161 during the 12-month period.
Revenue fell to £901.3m from £994.5m in 2023, driven by what the company described as a 'year of transition' marked by geopolitical uncertainty, elections in major economies, and ongoing inflationary pressures. The results followed a loss of £39.8m in the previous year, with the last pre-tax profit of £35.9m recorded for the 48 weeks to the end of 2022.
An impairment of £32.1m on right-of-use assets and store property plant and equipment 'significantly impacted' the financial performance, Clarks said. The company noted that cost rationalisation and restructuring were implemented to 'right size the overhead cost' for the current business size.
Chief executive Jon Ram resigned in April 2024 after two years in the role, and the company is currently led by an interim executive committee while a successor is sought. Clarks stated its 'focus is to return to sustainable sales growth combined with a cost-focused attitude to deliver healthy store profitability in 2025.'
