Monsoon Accessorize forecasts return to profit following ‘painful’ year

Monsoon Accessorize is set to return to profitability this year following a “painful” last 12 months.

The retailer’s CEO Nick Stowe told Drapers the company was forecast to hit high single-digit or low double-digit EBITDA by the end of its current financial year.

It comes as Monsoon swung to a £2.2m loss in the year to 31 August 2024, down from EBITDA of £20m the year before. Sales dropped 11.8% to £218.7m.

Stowe blamed its losses on increasing running costs, Monsoon’s outdated kidswear offer, the cost of living crisis, and its liquidation of its Italy and Saudi Arabia franchisees.

He said: “It was a mix of things that all swirled together at the same and caught up with us. We let our kids business go for too long without refreshing it. We didn’t give it its due attention so that caught up with us.”

The retailer’s kidswear offer is now being overseen by a new buying team, while its design has been overtaken by womenswear creative director for Monsoon Caroline Jackson.

Monsoon Accessorize invested £7m in retail, technology and operations initiatives over the period.

The retailer launched 14 new stores in the UK and refitted eight last year. It also axed 11 shops over the period, with the majority forming dual-format Accessorize Monsoon shops as it sought to shift towards standalone shops for both retailers across its whole portfolio.

In February, Monsoon debuted two new travel boutiques at London Gatwick’s North and South Terminals, with its new travel concept representing an evolution of its small boutique format.

The concept had already been introduced to UK high street locations, including George Street in Edinburgh and Upper Street in Islington over the past two years.

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