Irish operations of Gap and Flying Tiger slip into the red

Expansion costs dragged the Irish divisions of two well-known international retail brands into the red last year.

Newly filed accounts show that increased lease and staff costs for Gap Stores (Ireland) last year contributed to the business recording a pre-tax loss of €308,156 — a turnaround from a pre-tax profit of €24,000 in the prior year.

Separate accounts show lower revenues and higher costs at Tiger Ireland Ltd — which operates the Flying Tiger brand — contributed to the company recording a pre-tax loss of €171,201. This compared to a pre-tax profit of €1.33m in 2016.

The Gap Stores Ireland accounts show that the company recorded the €308,156 pre-tax loss after the company’s lease costs increased by €153,684 from €1.643m to €1.797m.

During the year, The Gap Stores Ireland’s revenues increased by 12% to €12.67m. The rise in revenues and lease costs was as a result of Gap opening a new store in Limerick.

In its accounts, Gap Ireland said “opportunities will continue to be sought to improve profitability and market share in the Irish casual apparel market”.

The company’s accumulated profits fell from €1.86m to €1.58m while its cash pile reduced from €1m to €502,230.

Numbers employed by Gap in Ireland increased from 100 to 109, resulting in staff costs increasing from €1.45m to €1.8m.

The Flying Tiger chain of shops here offer an assortment of products ranging from home, kitchen, hobby and party toys, electronics, and gadgets.

The company said its future Irish growth is dependent on finding suitable high-profile, high-footfall locations at appropriate rental levels.

Tiger’s Irish business sustained its loss as lease costs increased from €1.624m to €1.872m and non-cash depreciation costs increased from €480,657 to €557,984.