Boden’s recovery efforts are gaining traction despite doubling losses.
- The retailer faced a £9.4m loss in 2023, up from £3.9m the previous year.
- Sales dropped by 13% to £304.5m, with a downturn seen since 2022.
- A reshuffled leadership and strategic changes are credited for improvement.
- 2024 shows promising results with increased sales and profitability.
In the fiscal year ending December 2023, Boden, a prominent clothing and lifestyle retailer, reported a substantial loss of £9.4 million. This figure is more than twice the losses recorded in the previous year, which stood at £3.9 million. The decline in performance, as reported by Drapers, started in the latter half of 2022 and carried over into the next year, leading to a significant 13% reduction in sales, which totalled £304.5 million.
Despite the financial setbacks, Boden has indicated a recovery is already underway, primarily attributed to strategic leadership and operational overhauls initiated in early 2023. These changes, which include modifications in marketing and product strategies, took time to permeate through the company’s operations, impacting stock availability and sales dynamics.
The second half of 2023 marked a period of stabilisation for Boden. The company’s renewed focus on catalogue marketing and the introduction of new seasonal collections specifically aimed at its existing customer base contributed to a 19% year-on-year increase in full-price womenswear sales. Such efforts appear to have paid off, with an 18% rise in overall sales observed in the first half of 2024, significantly buoyed by a 35% increase in the womenswear segment.
The surge in womenswear sales was particularly pronounced in the dress category, which saw a remarkable 47% growth. Contributing to Boden’s return to profitability was a strategic reduction in discounting, leading to an impressive seven percentage point rise in gross margin during the first six months of 2024.
Johnnie Boden, the founder and creative director, openly acknowledged past missteps, stating, “I made a series of serious mistakes and felt like a fool.” He praised his team for their resilience, noting that the company has successfully “turned the supertanker” and is “back on course,” with early 2024 showing strong improvements in both sales and profitability.
Boden’s strategic adjustments and leadership changes have set the stage for a promising turnaround in 2024.
