Fashion retailer breaks even after negotiating leasing deals

The Irish arm of fashion retailer Karen Millen said yesterday it is has negotiated slightly improved lease terms on some outlets.

Accounts filed with the companies office show that Karen Millen Ireland Ltd broke even in the 53 weeks to Mar 2, 2013, following a €1m loss in 2012.

The firm recorded a break even performance in spite of revenues falling 15%, from €8.8m to €7.5m.

Karen Millen’s fiscal 2012 report stated that a viable business plan was part-dependent on securing rent reductions.

The new figures show Karen Millen last year paid €300,000 less in lease payments, going down from €1.6m to €1.3m.

On the aim to drive down rents at their outlets, a spokesperson for Karen Millen said yesterday: “Nothing has changed since last year other than negotiating some slightly improved lease terms. Ultimately, Karen Millen’s portfolio continues to be about trading with Brown Thomas in six of our nine locations.

The directors’ report says the 15% decrease in revenues arose “against the background of a difficult retail environment”.

The directors state: “The gross profit margin was 59%, resulting in gross profit for the period of €4.4m. Distribution costs amounted to €4.3m. This equates to 58% of sales.”

The figures show that the firm was sitting on accumulated losses of €27.7m as of Mar 2.