Karen Millen’s losses at Irish division narrow to €300k

PRE-tax losses narrowed at the Irish arm of fashion retailer, Karen Millen to €300,000 last year, new figures show.

Accounts filed with the Companies Registration Office by Karen Millen Ireland Ltd show that pre-tax losses reduced to €300,000 to the end of February 2011 after the firm recorded a €5.3 million loss in fiscal 2010 after a €5.2m write down.

According to the directors’ report, against the background of a difficult retail environment, total sales for the 56 week period amounted to €10.8m — a 2% rise on the €10.6m in sales for the comparative 52 week period.

The report states: “The gross profit margin was 56% (2010 66%) resulting in gross profit for the period of €6.1m.

The report adds: “Operating loss excluding exceptional items amounted to €100,000 and earnings before interest, tax, depreciation and amortisation amounted to €500,000.”

Looking ahead, the directors said “the company will continue to focus on improving cash flow and margins in existing stores by increasing efficiency and managing risk.”

Shareholders’ deficit stood at €1.1m at the end of February last and the directors say they “will review the current net liability position at the AGM and identify steps to be taken in order to recapitalise the balance sheet.”

Numbers employed by the company last year increased from 103 to 118 with staff costs increasing from €1.5m to €1.6m.

Karen Millen is owned by the Iceland-based, Kaupthing Bank who also own Coast Stores Ireland Ltd.

Separate filings for that fashion retailer show that losses last year dropped sharply to €400,000 following a loss of €12m in fiscal 2010 that included a write-down of €11.7m.

The directors’ report states that “despite the difficult retail environment, total sales amounted to €10.3m compared to €9.5m — an increase of 8%.

The gross margin was 61% (2010: 67%) resulting in gross profit of €6.3m.

The operating loss before exceptional items amounted to €400,000. Earnings before interest, tax, depreciation and amortisation (EBITDA) were €400,000.

The combined cost of depreciation, impairment and impairment charge on fixed assets totalled €800,000.

The company’s immediate parent, Coast Holdings, waived a payment due of €28.5m for no consideration. This resulted in the company’s shareholders’ deficit declining from €28.6m to €500,000 at the end of February last.