Monsoon Accessorize expects return to profitable growth as store and tech investments pay off
Monsoon Accessorize expects a return to sales growth and profitability by the end of the current financial year, thanks to its "strong" performance and strategic initiatives implemented in the previous year.
Despite a persistently challenging economic environment, the business delivered "positive" trading during the peak periods, including Black Friday through Christmas as well as Ramadan in the Middle East.
While challenges persist, with uncertain retail sales and significant cost pressures, the company said it remains "confident" for the full year.
It comes as Monsoon Accessorize reports an 11.8% decrease in group sales to £218.7 million for the full-year ending 31 August 2024, describing the period as a "transitional financial year".
Sales were impacted by decisions to realign Monsoon’s retail portfolio, such as including accelerating old store closures, investing in new locations, refreshing its childrenswear, and transitioning its two largest international markets - Saudi Arabia and Italy - to a new partner and an owned operation, respectively.
During the year, the group opened 14 UK stores and refitted eight, bringing the total portfolio to 141 stores and seven concessions as of August 2024.
Ongoing investment has updated most Accessorize stores to the latest design over the past three years. Meanwhile, Monsoon has continued to expand its portfolio with a new travel-focused format at Waterloo Station, which served as a template for two London Gatwick locations that opened in early 2025.
The year also saw investments in its digital presence, including marketplace expansion and development of improved omni-channel functionality.
Additionally, the company continued investing in core technology platforms with the implementation of a new warehouse management system and the renewal of its UK distribution centre lease. In total, £7 million was invested during the year across retail, technology, and operations.
As a result, EBITDA dropped to £2.2 million as the firm absorbed "significant" UK wage inflation and funded the costs associated with these transitions.
Despite this, the company noted that its core UK Accessorize business and Monsoon Women’s business - which together account for approximately 70% of sales - performed "well" despite the "challenging environment".
Nick Stowe, CEO at Monsoon Accessorize, said: "Last year was a tough year for us and for retail in general. But it’s a long game, and we pushed ahead with our plans and investment, and faced into the need to improve our performance in several areas.
"Turnarounds are rarely linear or straightforward, but we’ve navigated a difficult year back into growth and solid profitability, and we’re confident in the momentum we’re building for the years ahead."
Peter Simon, founder and Chairman of Monsoon Accessorize, added: "In the face of a challenging trading backdrop and ongoing inflationary pressures, we took the necessary steps to realign and strengthen our business. Due to the actions taken and investments made, we are encouraged by current trading performance and optimistic about the opportunities ahead of us.
"We remain committed to our strategy and are continuing to invest in our product, distribution channels,and technology so that we are in an even better position to capitalise on the new fiscal year’s momentum."
