Clarks has blamed ‘challenging market conditions’ after laying off more than 1,200 workers amid a sales slump.
The 200-year-old shoe retailer reported a fall in revenue from £994.5 million in 2023 to £901.3 million.
Its latest corporate filings show it suffered pre-tax losses for the second year in a row, amounting to £39.2 million last year.
Meanwhile its headcount fell from 7,413 to 6,161 in the same 12-month period.
The firm last posted a pre-tax profit in its 2022 accounts, amounting to £35.9 million.
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The filings said results were ‘significantly impacted’ by a £32.1 million drop in the value of right-of-use assets, store property, plants and equipment.
Clarks is still being led by an interim executive committee nearly 15 months after then-CEO Jon Ram resigned after two years in the job.
A statement signed off by the board said: ‘2024 was a year of transition within the business, as internal and external factors created a variety of challenges.
‘Externally we were faced with challenging global market conditions.
‘With a high number of major elections taking place in countries like the United States, United Kingdom, India, the European Union and several emerging markets, businesses and consumers faced uncertainty regarding potential shifts n trade policies, regulatory frameworks and fiscal strategies.
‘This had a significant impact on the economy, driving volatility in financial markets, influencing investment decisions and shaping economic policies.
‘Coming on the back of continuing major conflicts and inflationary pressures, this led to reduced consumer demand in 2024.
‘FY24 has therefore been a year of tradition for the Clarks Group with cost rationalisation and reduction to fix the foundations for our future.
‘Significant changes have been made to the operations in the year to right size the overhead cost for the current business size, refocus the marketing approach, reposition the product assortment and set up the business for recovery and sustainable profitable growth in 2025.’
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