Hobbs turnover is halved as pandemic takes its toll

Womenswear brand Hobbs saw it turnover halved in the 12 months to 27 March 2021 and it swung into a full-year loss, as the pandemic took its toll on trading.

The company said that before the pandemic it was “performing well” but cited store closures and a drop in demand for its core product ranges, as reasons for why its yearly turnover decreased by 51% to £65.1 million. It added that due to restrictions it had lost 47% of its store hours during the year.

Hobbs made a loss after tax of £15.2 million compared to a profit of £4.3 million the previous year and saw gross margin drop to 46% from 60% due to increased promotional activity and higher Covid-19-related stock provisioning at the end of the year.

Looking ahead, Hobbs said its principal risk was “the pace at which customer shopping habits return as the world recovers from the pandemic”.

But it added that its “attractive and affordable” offering combined with its “strong online presence”, both directly and through third parties, made it “well placed to thrive”.