Clarks, one of many UK’s best-known heritage footwear manufacturers, has slashed greater than 1,200 jobs following a steep fall in gross sales.
The footwear retailer, which is a staple on British excessive streets, reported revenues of £901.3 million for the 12 months ending 2024 – a big drop from £994.5 million in 2023, marking a decline of almost £100 million. In the identical interval, Clarks recorded a pre-tax lack of £39.2 million, mirroring the £39.8 million loss posted the earlier 12 months.
The job cuts have lowered Clarks’ workforce from 7,413 to six,161, because the model strikes to “proper measurement” its operations.
In a press release, the board described 2024 as a “12 months of transition”, attributing its efficiency to a mix of world macroeconomic uncertainty, ongoing geopolitical conflicts and chronic inflationary pressures.
The Board stated: “Externally, we have been confronted with difficult world market situations.
“With a excessive variety of main elections happening in international locations like the USA, United Kingdom, India, the European Union, and several other rising markets, companies and shoppers confronted uncertainty relating to potential shifts in commerce insurance policies, regulatory frameworks and financial methods.
Clarks has been working underneath an interim government committee since the resignation of former CEO Jon Ram in Might 2024. Ram had held the place for 2 years earlier than stepping down, and no everlasting substitute has but been named.
Trying forward, Clarks is adopting a brand new technique with efforts targeted on restoring profitability in 2025.
“Important modifications have been made to the operations within the 12 months to proper measurement the overhead value for the present enterprise measurement, refocus the advertising method, reposition the product assortment and arrange the enterprise for restoration and sustainable worthwhile progress in 2025”, the Board added.
