Ben Sherman expects a grey year following poor 2012 results
British brand Ben Sherman – owned by American Oxford Industries – is celebrating its 50th anniversary this year but the future is not looking all that rosy. The brand saw the departure of its CEO Pan Philipou in November and revenue for 2012 was less-than flourishing.
"Needless to say, Ben Sherman's operating results in fiscal 2012 were extremely Disappointing. Missteps in the execution of our strategy coupled with a difficult consumer market in the UK and Europe have put pressures on both our top line and gross margins,” say CEO Thomas Chubb III. “We are taking specific actions to stabilize and improve this business, but the impact of these challenges is expected to continue into 2013, particularly in the first half.”
Colin Naylor, international sales director since the end of 2012, will have the task of fixing some of the issues. Revenue for 2012 decreased by 10% to 64 million euros (82 million dollars). Operating loss increased to 8.5 million euros in 2012, largely down to poor wholesale results.
Ben Sherman is somewhat the black sheep of the group, with Oxford Industries’ other two brands Tommy Bahama and Lilly Pullitzer reporting revenue growth of 17% and 30% to 412 and 96 million euros respectively. Overall, the group reported an increase in sales of 17% to 667 million euros and net operational profit of 54 million.
For 2013, Ben Sherman is expecting a further decrease of 10% in sales and the team’s main objective is to reduce operational losses. In order to achieve this, the company plans to reduce expenses, lower inventory risk and emphasize areas of potential profitability, such as e-commerce and existing retail stores.
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